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for Construction 


No. 2S,67S 


PUBLISHED IN LONDON AND FRANKFURT 

Wednesday January 20 1982 





MANUFACTURERS & SUPPLIERS 
OF BUILDING &. CHEMICAL PRODUCTS _| 
FOR TKE CONSTRUCTION INDUSTRY. 


FEB INTERNATIONAL LTD 

Albany Hous*. Srrlnton HaHHWffl, MflBOIfe 
Ifanch— tpr M27 1PT.T1: OW 7947411 


CONTINENTAL SELLING PRICES: AUSTRIA Sch. 15: BELGIUM Fr 30: DENMARK Kr 6 00; FRANCE Fr 5 00; GERMANY DM 2.0; ITALY l 1.000. NETHERLANDS FI 2.25; NORWAY Kf 6.D0; PORTUGAL fee 50; SPAIN Ptt *; SWEDEN Kr 8.00; SWITZERLAND Ft- Vts EIRE '4Zp; MALTA. 3fc 


^Sll 



cost lives’ stron: 


Tbp Yorkshire Ripppr. Peter 
Sutcliffe. would have been 
arrpsicd earlier — and many of 
his victims saved — if I lie police 
had not made “ major errors of 
judgment." Home Secretary 
William Whilclaw said. 

He i old MPs in a Commons 
statement on the review of the 
rase That the Yorkshire police 
had civen “ excessive credence " 
ir» letter* and tapes from a man 
claim ini' to he the Ripper and 
their incident room had he.-ome 
overloaded with unprocessed 
information. Parliament. Page 

in 

Trpmier Mar caret Thatcher 
told MPs she supported the Lord 
Chief .lust ice's call fn r prison 
sentences fnr nearly ail rapists. 
She alsn shared the concern 
ahniM the way police handled 
rapt- interviews after n I de- 
rision documenlary on Monday 
ni^hi. 

RaiS peace hopes 

Hnprs were rat er, d nr sell I m3 
the rail dispule a« TI.T. general 
s^ereiary Len Murray joined 
talks at A cap where it seemed 
a plan fnr rnmfirdi* 3 n* ; ivp 
arhuralmn on all a.-perl< of the 
rnw was being put b‘zetlicr. 
Park Pace 

Sinai agreement 

Ezvpi and Israel sizned an 
agreement after three days nf 
rakls m Cairn which should lead 
in Israel’s final withdrawal front 
Smat in April. Earlier xfnry. 
Page 4 

Press seized 

Tnliih spfhrity pn! ire smrod 
n n* 1 of Solidarity's secret print- 
m; prr;*e* in a flat in 
'Vr'H-law. <outh wr-.i Poland. 
They a l* a found antiouartial 
Jr., dr i s and for zed identity 
pr per v Rack Page 

India vaoience 

At lean liie pcoplr were 
reported dead and ion injured 
in ■;la«he** 'ft nil hy a :!4-bnu»’ 
national Mtiko az.unsr Premier 
Tn>!ir.i Hand hi. Mixed response 
rn Mriki-, Page -1 

W-piant blasted 

Fr«> Snviei-made anti-tank 
rockets wpi-p fired at !•' ranch's 
mo-ii advanced nuclear power 
Million a i Creys-Malville. near 
L:- on?. Li 1 1 le damage was done. 

Fighters crash 

T'tn Belgian Air l-’nrce lighters 
collided in mid-air during a 
traimnE .se:i*,no. fine pilot. 
pjAr-rort. rhn mleir was still mi«s- 
m: near Kochefori. south of 
Brussel?. 

Snow Inquiry 

Common Market official* ha'° 
begun an invesiigaiion mm Hip 
da mace- and losses mi fibred in 
snowbound Wales a- Print-** 
rharlejE visiled areas worst hi; 
h* blizzard^. 

Nazi jailed 

Bf»!f-<i\ted American .\'a.-i party 
li^menarfit David .YeNon. 25. 
war jailed for four year* in Lo 
An col os for lirohumbinc a Cali- 
fornian synayu-iue. 

Cheap fares move 

Liverpool ''Hy Gunned decided 
m withhold furilmr pay men is of 
a «nppleincn!ary ram levied by 
Merseyside Gouniy Council in 
provide cheap bus fares. 

Pub crawl 

Landlord Kod Mahon and bar- 
man Ken McKenzie heal the 
world nonstop vrawlins record 
of 'JR miles by one mile when 
they went around iheir own 
pub 2,501 rimes in 13 j hours. 

Briefly ... 

Fire at an ‘»rdnancr Depoi at 
More' on-on -L iili:. near Here- 
ford. caused £3.5m damaze. 
Ballet star Rudolf Jiurcyev has 
been granted Au>trian citizen- 
=hip. 


F.T. industrial 
. Ordinary 

\ Index 


CHIEF PRICE CHANGES YESTERDAY 

1 Prices in pence unless otherwise Indicated) 


i Prices in pence u 
RISES : 
Treasury 15«T, ‘55 . 
Exrh. 12^ 20i:M7 .. 
A 'IB Re«earch 

Anken rfume 

R.-res 

Blue Circle 

British & OVoaUh 
•.'able & Wireless .. 
t'alednnia I pits. .. 

t’henirm: 

Tuxnn? Phoin 

T-‘.az! r Star 

•"■laxn 

Grand Met 

C-KN 

Hambro Life . . . . 
HawKcr Siddelpy .. 

ICI 

Luca? lnd? 


otherwise Indicated) 

Maznet & Stiirn*. ... 

— 1 Mercantile Hmi=e .. 

— 1J Midland Bank .... 

— 7 Peters Stores 

— 20 PIcsSey 

-F 6 R*cd Ini 

— jo Royal Bfc. Scotland 

— n Sidlaw Indv 

— R Standard Telephones 

-r 17 Tarmac 

— 7 Trust house Fnrie . . 

— 7 Gmoivfei 

t- it Mnekalharra 

12 MIN Holdmss 

— P Po*cirton ... 

+ FAM.S: 

— 0 Bank of Senlland 

-r id Bnt^h Cine- Th ir«. 

■■h fi ME PC 

-Ft) MF1 


14R - R 
412 -r 14 
S4fi - 14 
SZ -t li 

r!R2 - 12 

“lift — 14 
123 - 3 
243 - 15 
4R3 -t- IS 
41fi - 14 
121 - fi 
-•OP - 22 
inn -r 7 

«-p — 

iij • 

125 + S 

47n - in 
43 - 7 
21 1 — 11 
57 - 4 


Miners set to give 
clear majority for 
9.3% nav offer 


BY CHRISTIAN TYLER, LABOUR EDITOR 


• EQUITIES gained In con- 
fidence anil closed at the day's 
best. The FT 30-share index 


A S 0 N D J 

1981 1982 

finished 11.2 u|» at 515.0, its 
highest since Septemher II. 
Page 34 

9 HILTS’ strength continued. 
The Government .Securities 
index gained 0.05 (o 63.61. 
Page 34 

9 DOLLAR Tell to DM 2.235 
(DM 2.2»«5t. to SwFr LSI 75 
fSwFr 1.8490). and lo Y224.SO 
(Y225.40). hill rose to 
FFr 3.8440 (FFr 3.S3G). Ils 
Iradp-weishled index IpH to 
J 08.7 (109.1 1. Taze 31 

® STERLING improved 1.20 
cenls to ST.S95, and lo DM 1.35 
I DM 4.3-1). FFr 11.0725 
(FFr 10.991. SwFr 3.505 
(SwFr 3.4825) and Y 125.30 
(Y424.50). Its irade-wpijrhlpd 
indpx rose (o 91.5 (90.R). Page 
31 

G l .OLD rose S3 in S375.3. P.ize 
51 

O WALL STREET was down 
4.«9 to S3 1.113 near U»c close. 
Paze 32 

O INTEREST RATES foil again 
as i he Bank nf England lowered 
it? dealing rates on Treasury 
and hi her Bills for the second 
clay running. Back Page 

Veto powers planned 
over Britoil activities 

© BRITOIL. the new mmpany 
which i^ in take i»ver the 
exploraimn and production 
ai.-livii ic* of P.NOC I- to he 
.-ii h jet lu what amounts to a 
* lovcrnni’m vein (n pn-vrnt ir 
•■•miinz iituler ihe (.i-ntml of 
tmdp.-irahle tntere.str. Faze jii 

© RN'OC is it, |..<,7 ns nzhi lu 
buy up io .-.J jii'r !•••□( of all the 
P'-irok'ii.u ZM' lifjiiiri? priuHnrd 
in i lu.- N'niih Sea. Paze 1ft 

Q ICI i-i preparing m axe an 
esiimaied 1 .5110 jobs at ils 
Welwyn Garden Guy research 
.mu .'idministr.il re cent re in 
Hertford- iure. Page f ' 

O SHORT BROTHERS, the 
s-raT ('-owned aem-pace company. 
announ n ed a in pci r<?ni ‘•m 
in n s labour fop-e. which would 
mean 65u redundancies at its 
Three Rcir.isj factories. Page S 

O FIRTH BROWN, one of the 
coiirnn 's higzcsi pm ale steel- 
makers. wjuk :n immciliaic 
iiji uf 2ou in i t-% 5.2nu-.st rung 
work fun o. Page 8 

© VIDEO CASSETTE format 
.■zreemeni h,i % hi-r-n reached hy 
Sony. Hn:chi .Maioishiia and 
JVC of I .-Dan arid Philips, i lie 
Dutch group. l<*r cameras they 
plan i*r introduce. 

© HKI'C. ihe t.'K's se.-i.ntl 
hi gee si properly group, 
announced a j£fi2.3m righi* i.^ue 
to help fund us worldwide 
deTehrpmem programme. Hack 
Page 

9 RTZ confirmed that the 
presem ■erm* of us nITer for 
Tims W. V.'ar.J were final. 
Page 26 

© Ml' I Furmtvir*’ Group mi- 
jii'o 1 . ed first -ha If taxable prollis 
hy 45 per n*ni m £7. 12m. Page 
24; Lex. Back Page 


THE MINERS have not only 
rejected their union'.-* strike call 
hu« may have voted by a clear 
majority to accept ihe National 
Coal Board's 9.3 per cent wage 
offer. 

If appears that even if Hie 
South Wales minora — who vflted 
late hocause of ihe weal her — 
have responded to their militant 
Jead^bip with a high rejection 
ran*, iheir vine will nm be 
enough io swing the result. 

It looked last night though 
ihe National Union of Mine* 
workers will get no more than 
4S or 49 Dvr cent for its ha Mot 
recommendation that the miners 
should strike “if necessary" - 
to secure a bigger offer. 

If ihe South Wales result, 
which will be known hy 
tonight, rail* short of area 
official** expectations, the over- 
all figure could he si ill loss. It 
will probably he declared 
tomorrow. 

The probability ihal the union 

had failed m secure even a 

simple majority- — it required u 
35 pur cent majority for strike 
adion — fuelled a long and .some- 
time? healed debate in the 
naimnni execiitwe ? csicrday. 

Mr .h»e Gnrmley. NLM presi* 
dent, escaped a mol inn of 
ecn.-urc fnr h i< arti ••U* in the 
Daily Express h-t week by ill si 
mie Vi lie." It bad advised miner's 
in “think hard " and. m effect, 
urged Them in overt urn the 
eseciuivp den u on. 

The motion, which apparently 


talked about unspecified 
■* disciplinary measures." was 
lost by 1-1 voles lo 12. reflecting 
the present right-left line on 
the executive. Some moderate 
area leaders criticised -Mr 
Gormlcy but did noi vote 
against him. 

Meanwhile, disappointed left- 
winger* warned ihat the Ha li I u 
would -resume next year. Mr 
Michael McGahey. Scot fish 
president and national vice- 
president. said he would like m 
sc*.* a campaign begin imme- 
diately and would support a 
demand for a minimum rate of 
£120 a week compared with the 
present demand of £100. 

“My attitude i« ihal we shall 
have lo get started on the next 
wages banle now." he said. 

Mr Arthur Scat'giM. Yorkshire 
area president who succeeds Mr 
Gormlcy in early April, 
ad mil ted afterwards: " It would 
appear from informal reports 
ihai the 55 per cent majority 
is nm going io he aitnined." 
Ir now looks as if even the 
simple majority has eluded ihe 
executive. 

Last night’s forecast is based 
on indications that ihe tug Nott- 
inghamshire area has arc-pled 
the pay offer hy nearly 70 per 
com. while Yorkshire, hy far 
the largest constituency, has 
reject pd it hy about 69 per rent. 

The Yorkshire rejection vole 
is larger than last year's 64.6 
per cent “ No ” vote and will he 
a comforting result for Mr Scar- 


cill. But the voter, of the mili- 
tant areas have not been enough 
to counterbalance anti-strike 
feeling elsewhere. 

H -was Yorkshire's general 
secretary. Mr Owen Briscoe, who 
moved ihe censure motion 
against Mr Gormlcy. The pn?- 
sidcnt said virtually nothing 
during the iwo-hour debate 

At one point, tempers flared 
when Mr .lack .loncs of the 
Leicestci'-shtro area rose from 
his seat clutching a carafe of 
water io threaten Mr George 
Rees. South Wales .secretary, 
who was sitting opposite him. 
The incident was quickly over 
however. 

Mr Gnrmley claimed after- 
wards that ak the president 
elected by all the miners he 
had the right to say what hr 
did. The collective responsi- 
bility of ihe executive — on 
which Mr Gnrmley has always 
insisted for b‘s left-wing oppo- 
nents — hod been breached by 
them first, he said. 

Asked if he had apologised fnr 
his article, he snid: "You can’t 
lead a group of lads like Ihe 
mind's always" being on your 
hlnndy knees.” 

Much of the blame _ fnr the 
union's vote is being pinned on 
.Mr Gormlry’s article. This will 
allow the left lo say that Iheir 
pay voir 'n no way rpfleets lack 
of confidence in Mr Srargill. 
who was elected by a record 
7H per cent. 

Editorial Comment, Page 22 


may increase 


.52 SSL V ^4 


BY JOHN GRIFFITHS 


p q mi 1 ȣ 


TIGHTER Gowrtimoni rnoiit'k 
oil Ihe operation of ihe I)" 
Lorean car concern »!•» aimo.-t 
certain in be a condition of any 

run her Gove rumen i assistance 

and po<siblv of the continual ion 
of existing finance arrang-mem**. 

Sir \..1am Butler. \f»rrhorn 
Ireland Minister nf Stale, told 
the fommuiK jc-ierdav that Gic 
finvernment was nl.-innin-j r. 
major review nf tis rciation^hs tp 
will? the companj. 

Th* 1 review will mi in do ihe 
extent .0 Government r^piv'cn- 
latiun on the hoard'* »f » h*- I' 1 ’ 
Lore.m compniiK-. iln- w.i> in 
which iI.j performance i^ rr.nn;- 
mred '0011. v.-nh ihe .v-ivt-m*** 
of indep- ndem c«in-*ii!t:inl •. an 
a*sf*-<ment «.( u.- perform;. nco 
to dab- and fin lire pro*. port c." 

M~ I'.iilier i;onfiun‘’rl iliai :!<o 
Gnvornnvni would ■.••tori 
gusi ran toes of bank loan mad" 
IO 111* I .or can la year 

ft will zu.irr-n f .'.’ft'ni unit I 
Mar 31 and £3ni until Angus! 


51. Pic. mu? aii.i ran !<»«■ t foiallmz 
i’lTm expired on Deivniber 51 
Dr Lorean applied for £|i*m 
■guarantee until n>'Xt December 
31. 

Mr Duller gave uo imliraiimi 
of .my progress in De Lore an'? 
talk*, with ihe Ex non Credit? 
Gi 1 a ran 1 ci* Depanmeni on t hr 
i •«■.’*■* i Me provision of r. £5um- 
£35 m export credit guarantee 
line to finance the Bel fan 
assembly plani\ proil iciinn and 
in. -’n lory until a predicted sale? 
upturn ui March. 

Sale* - ha\c ?lutope<| sharply 
in ti>- past two 1111(11 i li.i and mil- 
put ha* i»een it .lived tu 'Jtltl a 
v.rt-k in th*-* face if mnutiting 
ca.-h flow dirfieulties. 

ft 1; unde: *-!o"d. ii'iw-.v, 
that :nlk« between senior 
1.Ar«r.n rxei.niives and the 
E>'C.r» on Monday Hoi no 1 , lead 
Jo an milnzln rejec»inp. The 
n'it'-nnte. r#r :ii<ir<vi *\Jielher 
««.rne m'ner Guvcrnment >.onr*'e 

pf furl her finance may iir pro- 


VI v»u 


vided. i- expeelPrl tn depend nn 
the initial cnnclt is mns of ihe 
renew. 

This is being undertaken 
urgently ami the Dp Lorean 
board is rn meet senior Northern 
Ireland officials this morning. 
Mr .lohn De Lurean. the com- 
pany's chairman, and hi.-> hoard 
will meet in Ihe afternoon. 

Th>* deci«ion hy the De 
Lorean hoard in Decern her in - 
award performance bonuses | 
totalling >760.000 (£401. (IV) I lo I 
senior -'talT is regarded a« par- j 
HCMlariv insensitive in Govern- ; 
mem circles. [ 

De Lores ft has said Ihe I 
Mruis-s will tint be paid ttniil I 
the i-onip-iny can financ** them ! 
it’-eff. fun tlir ! , * - siie billows 
earlier friction. ?n particular 
over the strncfnre of (he com- 
n -:iv's plan ned si'.'m share 
flom inn m Ihe I i.S. 

This has been abandoned for 
Continued on Rack Page 
Editorial Comment. Page 22 


Coca-Cola 

offers 

$778mfor 

Columbia 

Picture 

By ion Hargreaves in New York 

COCA-COLA, the TJ-S. company 
which dominatfp.s -the world .soft 
drinks business. yesterday 
agreed In pay $T7Snt (£411m) 
in cash and slock for Colombia 
Pictures, one of the largest 
Hollywood film companies. 

The deal represents the find - 
major diversification for Coca- 
Cola in ils almost 100-year his- 
tory. If M goes through as 
planned, it will make the drinks 
company a significant presence 
in radio and television as well 
as in motion pictures. I 

Mr Roberto Goizueta, Coca- 
Cola’s Cuban-born chairman, ■ 
said the deal would give his | 
company “ a strong entry in an | 
industry which in our judgment ' 
presents opportunities for sig- ! 
nificant growth in future years, f 
particularly in the area of film 
entertainment and program- 
ming for cable and pay tele- 
vision.” 

Columbia would continue to , 
be ruar as a separate entity 
under Us existing management, ! 
he said. 

The offer involves Coca-Cola 
paying 332.625 in cash and 1.2 
of its own shares for each or 
Columbia’s S.4m shares. On 
Coca-Cola's closing price hefore 
the announcement the offer is 
worth more than $77 a share, 
compared with Columbia's 
rinsing price on Mon da v of 
$4IJ. 

According to analysts, institu- 
tional investors were reacting 
negatively tn the deal on the 
grounds of the high price Coca- 
Cola has offered and their feel- 
ing that the company’s sound 
performance over .many years 
wril not be helped by exposure 
io a cyclical and risky activity 
like films. Coca-Cola stock re- 
npeneri after the bid down $2 
at *32 J. 

However. Columbia is con- 
sidered on Wall Street to he one 
nf the best motion picture enm- 
pantcf*. partly because ii has 
•lone quite well ar the box office, 
la toll- and is expected to score 
a major success with its forth- 
coming film nf thp musical 
Annie, and also hecause it has 
made sensible use nf ils oppor- 
tunities in the booming cable 
TV. pay TV and video indust- 
ries. 

Columbia is in the process 
of haying Outlet, a company 
based in Providence. Rhode 
Island, and which owns five TV 
sialinps 

£ In New York 


spot M.PR0O P903.? 1.B610 B640 
1 month 0.23 0.19 dis 0J?5-O^2 dis 
3 month* 0.52-0.27 dis 0.46.0.41 dig 
12 months 0.10 dlz-nil 0.50-0.40 dis 


to 



BY JOHN MOORE 

THE most hizarre battle for 
control of a British public com- 
pany began last sight. Heron 
Corporation, one of the UK's 
largest private businesses, 
headed hv Mr Gerald Ransom 
gained injunctions from the 
English courts to flop tKe 
Australian entrepreneur. -Mr 
Robert Holmes i Court, gaining 
control of Assodated Communi- 
cations Corporation, Lord 
Grade's entertainments empire. 

“The whole situation is wide 
open -for other bidders,** Mr 
Ronson said last nigitL " We 
are considering a number of 
situations as far as this company 
is concerted. So far 1 feel , the 
hoard of ACC has had a pistol 
held to ils head.” 

Heron Corporation. with 
interests in petrol retailing, 
motor vehicle distribution, pro- 
perty. watches and insurance, 
was granted injunctions last 
night by Mr Justice IVourse in 
two legal actions. Both injunc- 
tions last until Friday, 
January 22. 

Under the first injunction the 
Independent Broadcasting 
Authority, which needs to give 
its approval tn a company tak- 
ing over effective control of. a 
UK television franchise, is 
restrained from approving the 
£36m offer for shares in ACC 
made hy The Bell Group, the 
.Australian, master company of 
Mr Holmes a Cnurt. 

Heraa said last night that any 
transfer nf ordinary .voting 
shares of ACC Is by virtue of 


its articles of association sub- 
ject to the approval of the 
Authority. 

• In the second Injunction ACC 
and each of its directors includ- 
ing Mr Holmes a Cnurt are 
restrained from approving or 
effecting . any transfer . .of 
ordinary voting shares in the 
caiptal of ACC- ' 

-Mr Ronson indi rated -last, wpek 
that he is prepared to offer 
£42 Jim for ACC but that anv 
deal would depend on an investi- 
gation into the companv f s 
affairs. He initially sought Mr 
Holmes k Court's acceplanep nf 
the deal. Any agreement would 
depend on whether Mr Holmes a 
Court was prepared to pass his 
stake to Mr Ronson ’ R croup. 

Before Heron’s surprise vnnr». 
Mr Holmes A Court had looked 
certain to gain control of ACC. 
An injunction brought by Mr 
Jack Gill, the group’s former 
‘managing director, who left 
after a boardroom rift with Lord 
Grade, to. stop directors’ trans- 
ferring .their shares to Mr 
Holmes, k Court was not con- 
tinued by a judge. 

Mr Holmes ft Court was set to 
control more than 6P per rent 
of the voting shares. He already 
controls more than 51 per cfmt 
of the nnn-vnti»? shares of ACC. 

Another contender for AC.C 
was Mr Robert Maxwell, ehair- 
British Printing Corporation and 
man of RPC. formerly the 
now part of Perga moo Press 
Continued on Rack Page 

Grade’s ‘ultimatum,’ Page 6 


Reagan may double tax 
on petrol and alcohol 


BY ANATOLE KAUET5KY IN WASHINGTON 


PRF2?TJYF.%fT- Ronald Rea-gan *s 
to double excise- taxes on octroi, 
alcohol and tobacco and is con- 
sidering imposing new taxes on 
luxury items, according to 
officials in the U.S. Administra- 
tion and Congress.- . 

However., the President is 
reported tn he examining plans 
to make the tax increases part 
of a broad shift in responsibility 
for public ' spending from the 
federal to state and local gov- 
ernments. This could help dis- 
pel some of the political 
embarrassment a straight tax 
increase* would involve. ■ 

Mr Reagan ha$ maintained for 
a tang .time that Washington 
should return much power to 
thp etates as part' of what he 
calls ’’the new federalism." 

The plan is. thought to. in-,, 
elude handing over control for 
about 40 federal spending pro- 


grammes in edirratioti, trio;- 
port, and welfare to local 
governments. 

These would he financed 
through a new “trust fund" 
which would receive the esti- 
mated S8bn f£L25hn ) in 
revenue raised ■ by doubling 
excise taxes, any nther tax 
increases and the SS.Tbn -now 
allocated by the federal govern- 
ment lo subsiffise local spending 
programmes.. • 

However, the total cost of the 
programmes handed over is 
likely tri be considerably higher 
than the federal revenue pro- 
vided; Thus the plan could 
bring big reductions both in the 
overall federal budget deficit 
and in the level -of social 
provision. 

' - There has' been no official 

Continued on Back Page 


U.S. cash injection for Laker 


BY ALAN FRIEDMAN 

MeDoYNELL DnUGLAS ;u!'l 
General Fk-ciric of >rK- U S. :ir«» 
m inject £5tu in i.'.v*h mm Lnk ,, r 
Airway. Thnr ir.vi.*«i.TiL‘n - in *'- 
ov-n 1 uill v ii.* trn n -In mo mm 
.*.har"holdinz* of >t •»» 

ami 2<» p*.*r i_c:n nf ; h ■■ :.:rln*- 

McDnnTicl! Dnimlj- i* * !:<'■ 
U.S. nircraif ni:ikv «h!<*i: -old 
It DC-lii** m Lr.K'r 
General Elwiric niakf* DC-fti 
cnulnus. 

Tin.* >Iiar>.'h<iMinz r . ■•Cr.u h v: : i 
■iilut** tlm equity held !;• Sir 
Frc-itiie Ldker amt m - :*>rai*.T 
wife, emerged la-! .♦- me 

of ihe ke> clcincr.:* nf 
survival parkaze r.nv. ii^inz 
coneluderf 7. .I<t*t 

banker ' and .iin-raf* m? 

Banker < involved in : ; .e 
Laker survival nackaje *- ;■ i rl 
nezmiaiinns on *h** 
airline’s iliree .\-5 nh .\-r l, v--e-- 
would <ipcn shnrily. i Vi-vncis 
which ihe airline had -i.r.*-d f or 
package in-jr.s and '.'harTer.* in 


I’K •S.iniliiei V. nillfl li*“ UK T *»-.-«•■ 

! Ii r Airbuses wcr-. ••o:.| i,^*rni*e 

■h^n. 

In :<'iffti!nn. Laker A.-u-v/ay^ 
:*.).• ■:.i'i.*i*!l"i| n.-. np!‘<in to pur- 

<*h./.-v **.••, i.*n n:nrc .\iriin.-e*-. f( 
•;■*.. c.*..*. i -y. i I k- airluT* ’-.-ill ikc 
DC- fti*. "ii i • *> Kiiri.peaa rub’.i--*. 

Ranker^ azrei.il ;u ju iin: 
J..IM-: .* Lu.-i'pi-.in i*'i:irii-rs were 
. -loienija! soUil-L* er "rifi'. I'll! 

rii..* :usrd*.*r of in** ?I5f:n 
* £ » A'i'lrii.** ijeiu i.; pro.*! 

rrm jre.''. The of al* ! h r 0 "* 

.\: wa.** li.r ih:* 

fjr. ■■■;*; of Laker Airv-.y**. 
M-.Tionncft Dn:izi..s «*..nf,rm*. '\ 

:h: ■ e:;pr;.;:rvj **,1 m.in- 

■:-iI asr m fip*n<" in r*i" .* ? rf i;;** 

H ■.■«.*! i n?-| to ■.pi". ;fv is ■■■.a,;, 

i.i-irr n*’-!ce*p! 

7.1* D'inncll Dnu :ir .niH 
< *e r.-.! KJe.-***ji- •• II re'epT 

re.-ii*ernah|e pi'ffrrep, 

:e rc:::rn for ificir va<h im»*r- 
■ :• »:a 

"Lake'- b:i** offerrri n 

_ CONTENTS 


oil ihe hoard, hut ive lime nr»t 
ma-jp a ilei*i»i,ui yri," said 
M.-Doinell lloiijlas. 

I: v.ji al?n learned Iasi night 
:li. 1 1 ihe airline had paid Sfi.7m 
< .'.'.'Lfim i nf infcrrsi iiwnl (n f ?ir» 
Midland-led Airbus udicale on 
.lenuary 12. 

Laker will also be paying 
•'llm nf interest owed in the 
DC-iu syndicate led hy the U.S. 
F-rport-lmnori Bank (Eximhankt 
'•■■hen rhis instalment falls due 
in March. This payment is ex- 
pe.’ied in come partly from cash 
reserves* md partly from the 
MeDonnoii Douglas - General 
Electric cash imecfton. 

Ai Simile] .Montagu Lake7''s 
merchan; bank. ?.(»• Tan Mclmnsh. 
a managing director, said last 
nieh: that di«ruc*i»ns nn the 
•lirvival p-iekage i**nuld continue 

ft"’ ,n ihree weeks befnre 
d-'iaih are sell led. 

Short Brothers nils workforce. 

Page 8 



Culling uncmpluynicnl: the* *>r 

early retirement . 'J2 

Northern Ireland power sharing: Pi-jur 

learns pi d: r- j* t ii .* 1/ l-i.nr •. ay _-5 

Energy review: renewed German effort* 
ft> make mi ii oni «;>»a! . 

Technology: hrdcl anti i‘ll : <:*: ‘.-'inpulcr 

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Broad 


page of the 






EUROPEAN NEWS 


• Financial Times Wednesday January,20 1982- ; 


gas 


increases as oil 


production falls 


~y BY ANTHONY- ROBINSON, EAST EUROPEAN CORRESPONDENT 


' SOVIET GAS production broke 
all records last year while oil 
-output fell marginally below 
-target*. 

Last year’s Bin-ton increase in 
-oil and gas condensate output 
' to 669m tons was just under 1 
• per cent and marginally below 
-the -already downgraded target 
of 610m tons. 

-The -cost of production in- 
creased sharply, reflecting the 
fact that eight tons of new oil, 
mainl y from wells in Western 
-Siberia, are now required to 
produce a one-ton net rise in 
production because of the rapid 
decline of output from older 
■ weUs. 

■ At 'the same time the net 
exportable surplus declined be- 
. cause the 6m-ton increase is 
believed to be less than the rise 
in Soviet domestic oil consump- 
tion. 

The Soviet Union has said It 
intends to cut by 10 per cent 
its oil deliveries to the Gome- 
con bloc starting this year. It 
originally promised to supply 
80m tons of oil a year to its six 
East European Comecon part- 
. nets- throughout the five-year 
plan -period to 1985. 

Poland is believed to be an 
exception, . however, and the 


Soviet Union has undertaken 
to increase its supplies to 16m 
tons this year from the 13m 
originally promised. ' This 
covers virtually, all the Polish 
import requirement Before the 
military takeover, the country 
needed to import more than 
3m tons a year for. bard 
currency. 

Meanwhile Soviet exports to 
the West have also fallen due 
to the squeeze on supplies. 

Soviet gas production last 
year rose 1.6 per cent above 
the already ambitious 9 per 
cent targeted increase to 465bn 
cu metres, compared with a 
target of 458bn cu metres. 

Gas output is planned to rise 
to 630bn cu metres by 1985. 
More than 40bn cu metres a 
year is scheduled to flow to 
Western Europe through the 
Siberia-West Europe pipeline. 
The pipeline’s completion date 
bas been put in doubt by U.S. 
sanction moves. 

Total Soviet energy exports 
to the developed Western 
countries were, an estimated 
72 per cent of hard currency 
earnings from these countries 
last year, although -the -volume 
of Soviet energy exports to the 
West dropped by 10 per cent, 
according to Western estimates. 



W. Germany to 


BY KEVIN DONE IN FRANKRJRT 


CONSTRUCTION of West Ger- 
many’s first uranium enrich- 
ment plant will begin in the 
spring, about' two years behind 
schedule. It is the <j'nal stage of 
the Anglo-Dutch-German agree- 
ment to estabish their own 
independent uranium enrich- 
ment fadtiies. 

. Under the Urenco joint 
venture, Che three countries are 
building an nitial capacity of 
21000 tonnes of uranium at 
three centres: Capenhurst on 
Merseyside in the UK, AJaselo 
in the Netherlands and Gronau 


in West Germany near the 
Dutch border. 

The West German partner in 
the venture, Uranit— itself a 
joint venture of Preussenefefctra 
(part of the Veba group) 
Hoeohst, the cbemicas group, 
and Nukern'(RWE, Metallgesell- 
schaft, De/yssa and Aio Tnto 
Zinc)— has had to wait nearly 
four years for Initial building 
permisson from the state licen- 
sing authorities in North-Rhine 
Westphalia.- ^ : 

In the first phase, the 
Gronau plant will have a 


capacity for 400 tonnes of 
uranium and is expected to be 
commissioned by ihe beg inn i n g 
of 1986 at an investment: cost 
of around DM 5Q8m ( £115m ). 

Plants at Capenhurst . and 
Almelo each with a capacity for 
200 tonnes of } uranium ate 
already in operation and further 
phases of 400 tonnes at each 
centre are under construction. 

The West German Research 
and Technology Ministry,- which 
is- meeting around DM 500m of 
the DM 850m West German 
costs, said the' total cost of 


establishing a joint capacity of - 
2,000 tonnes would be around 
DM ' -2bn (£460m). This stage- 
should" be' readied by 1986*87. 
This capacity is Already sold and- 
.further expansion pfthe Urenco , 
joint; venture wffl ^epehd .’on : 
market demand. : 

1 The ' project is important' -for 
West Germany, Web is trying 
to increase die security of its 
energy supplies. At present if 
. is gaining about 50 per cent of 
its uranium enrichment 
‘services from, the U.S. and. 50 . 
per. cent from the Soviet Unaon. 


. It is aiming by -1985 to cut ’■ 
Hie U.S. and Soviet shares eaeh'..V 
to about one-thirdr with the 
final third ;coming irom Urienco. 

- Gronau has been-desiigiied for^.,- 
a -capacity.of W>00 tonnes which 
would be- enougir.-to meet the - 
demands of nuclear power 
.stations '• with-va combined . 
capacity- of around 7,900 -MW. • 
West Germany currently, 
some. 9,000.. MW of nudeai F ;r 
power station power capacity in**: ' 
operation and expects to havt^.- 
commissioned- a- -total oif some J :.“"; 
18,000 -MW by 19$5. \ y - . ; :• . 


Eases 


condemned 


President’s 


Warsaw leaders face test as price rises are prepared 


BY CHRISTOPHER BOBIN5K! IN WARSAW 


threat stirs 


Portugal’s 

politicians 


By Dima Smith in Lisbon 

A FURORE has erupted in Por- 
tugal over tiie revelation that 
President Antonio Ramalho 
Eases mig ht resign and run 
as- ‘Prime Minister, if the 
power of the. presidency is 
reduced in the forthcoming 
constitutional review. 


‘Ecologists’ fire rockets 
at French N-reactor 


The news was bifteriy con- 
demned by both the ruling 
Democratic Alliance, led by 
Sr Francisco Pinto Balsemao, 
and by the Socialist opposi- 
tion. It was described as 
anti-democratic and an 
attempt to put pressure on 
the MPs who are reviewing 
the Marxist-leaning constrtu- 


POLAND’S military authorities 
are gingerly preparing to in- 
crease the prices of food and 
heating in the awareness that 
similar attempts have- led to 
working class strikes and 
demonstrations three times . 
since December 1970. 

The' Government’s economic 
committee has tentatively set 
February 1 as tire date for the 
intrahiction of the rises in an 
“open letter to society” pub- 
lished in the Press yesterday. 
But it is by no means certain 
that the proposed increases' and 
payments to compensate for the 
rise in the cost of tiviog already 
published' are the ones which 
wiH ultimately be introduced. 

The brief rise will be the first 
major test for the martial law 


authorities since they crushed 
resistance to banning ot trade 
union and other freedoms and 
the Internment of Solidarity 
activists after December 13. 

Even sf workers do not res- 
pond immediately to the intro- 
duction of the rises, strikes may 
break out later as The drop in. 
the standard of living is felt. 

Martial law is likely to be 
maintained at least until the 
workers come to accept the price 
increases. In a set of proposals 
published yesterday, the authori- 
ties reduced the planned rise in 
tiie price of gas, heating and 
electricity and have decided to 
increase pay to compensate for 
Ihe rises. 

Officials say this means tiie 
price of electricity and central 


heating will still be below pro-, 
dnetioh costs. 

According to Professor Zdzis- 
law Krasinki, the .Prices Minis- 
ter. the average rise in the 
cost of living as a result of the 
price increases as set out at 
the beginning of the year would 
have been ZL 1,200 (£8) per 
month. This will have dropped 
a little with the reduction in 
the proposed price rise of heat- 
ing. light and gas. The average 
monthly wage in industry last 
year was about ZL 7,000. 

Renter reports from Warsaw*. 
The Polish Communist Party's 
0 facial newspaper, said yester- 
day martial law had not halted 
party activities, and prepara- 
tions were going ahead, for a 
plenary session-, of its central 


committee to discuss the 
country's future. 

TTyfeuha Ladu also published 
an article that appeared to re- 
habiliate Mr Wladysfaw 
Gomctika, former parly leader, 
who was deposed in 197(1 follow- 
ing -Woody riots over price 
increases. The newspaper des- 
cribed 76-year-old Mr Gomtdka, 
now retired, as “an arduous 
internationalist add a patrioV 

comrauniet” 

The newspaper devoted a 
front-page editorial- to the forth- 
coming seventh plenary session 
of the party's 200memfoer cen- 
tral committee; the. first since 
the military dampdwro. 

The article, quoted • by the 
official sews agency PAP, said 
the central committee meeting. 


for which no date has beei^ ,- 
ann ounced, . was .' expected tt £ ;, -• 
“sum a "“certain amportam > .. : - 
phase in party work.” . 

This iws.‘ , a 'phare of strug|S( C. 
for ibe party's identity, and fo .-. 
national 'agreement, a struggji - 
waged under very difficult politir’ . 

A..?* • 


cal . conditions Tand against ai£ 


opponent ready- for ^nyt^g.V ^ -• 
theipaper said. ••••••' " 

Ttytmna Ludu. said all ceii - 
tnd committee members werw^ 
preparing for the plenary set / 
siou, which - would have ti i 
answer questions about tl* ; 
future of both the patty anl 1 
the country.- .. . . 

This' showed that martial lai 
had hot : imposed . unnecessar 
imitations on party activties, j 
added. . 


Tfeei 


Christopher Bobinski, in Warsaw, assesses Glemp’s attempts to wm reforms 

Polish Church manoeuvres in subtle gan 




BY DAVID WHITE IN RAMS 


A MAN yesterday claimed 
. responsibility an behalf of a 
group of “ pacifist ecologists ” 
for an extraordinary attack on 
the Superphdnix fast-breeder 
nuclear reactor, under con- 
struction on the Rhone, east of 
.Lyons. 

At least five anti-tank rockets 
were fired across the river in 
the direction of the reactor, just 
before midnight on Monday. 


Only minor damage — a bole in 
the metre-thick concrete outer 
• shell — was reported to have 
been sustained by the structure, 
built to withstand the impact of 
a large aircraft crashing on top 
of it. 

Police located the rocket- 
launcher and tripod on the far 
-river-bank. The apparatus was 
said to be of Soviet manufac- 
ture, of a type produced in the 
1960s. 

Two years ago, a Soviet-made 
rocket-launcher was believed to 
have been used in a brazen 
series of daylight attacks on 


Ministry buildings -in ' central 


Paris. These attacks were 
claimed by “Direct Action,” a 
shadowy far-Left group, often 
thought to be linked to the 
Italian Red Brigades, which the 
French police had supposedly 
dismantled only a few wed<s 
before. 

The Superphdnix reactor, the 
commercial prototype for the 
French fastbreeder programme, 
has long been a focus of anti- 
nuclear protests. In 1977. a 
demonstrator was killed by a 
grenade blast during a dash 
with riot police at the Creys- 
Malville site. 

Last March a group of 
French scientists published a 
a pamphlet entitled “Plutomum- 
on-the-Rhorie ” fiercely criticis- 
ing the fast-breeder venture. 

The FFr 8bn (£1.4bn) com- 
plex, being developed in part- 
nership with European elec- 
tricity companies, is expected to 
start operating early in 1984. 
Construction of the exterior of 
the 1.200MW reactor is virtually 
complete. The site is heavily 
guarded by police. 


Bankruptcies soar by 20% 


BY OUR PARIS STAFF 


COMPANY bankruptcies soared 
by 20 per cent in France last 
year to reach an all-time record 
of nearly 21.000. The official 
statistics- body. Insee called it 
“tile' blackest year" forinsolven- 
.'cies^slnce' 197.8, when the -total 
■rose by -t3per cent. But It 'said 
pie *tirend since the beginning 
of trie- autumn had pointed to 
“a certain levelling-oft" 

Last year’s rise was particu- 
larly acute in industry, which 
lost 4,200 companies, an increase 
of 31 per cent over the previous 
year. The failure rate for 
industry reached 1.9 per cent. 


compared with 1-4 per cent- 
overall. 

Industrial- services were badly 
hit, with a 27 per cent Increase 
in the number of bankruptcies. 
But transporters.- .builders, 
-hoteliers and restaurant-owners 
Tafed" rather “better. 

Despite the overall improvp- 
. ment since September. Insee 
said - that December' figures 
showed a resurgence. 

The bankruptcy rate has been 
on the rise in France for the 
past four years. But an increase 
of last year’s proportions has 
not been since 1975. in the: after- 
math of the first oil crisis. 


tion. 

Under that constitution, the 
President can veto legislation, 
dissolve Parliament call new 
elections and appoint a Prime. 
Minister. 

In order to run for Premier 
himself — a step not envisaged 
by the constitution — Gen 
Eanes would have to call an 
election and form his own 
political party. His backers 
have been taking soundings to 
try to gauge the degree of 
grass-roots support for a 
presidential party. 

President Eanes’s second term 
of office expires in 1985. and 
he cannot run again. "While 
most observers feel he is just 
•testing the water now; the 
Implications of his move are 
serious. 

The Balsemao government is un- 
popular and is struggling to 
cope with a SlObn foreign 
debt — . equal to half the 
annual GDP — stagnant pro- 
ductivity. shaky investment, 
and a heavy bill for oil and 
food imports. 

Opinion polls suggest that Gen 
Eanes is the only political 

- figure to command wide- 
spread respect from a public 
fed up with the intrigues and 
bluster of civilian politicians. 

The potential size of a centre- 
. left presidential party, should 
Gen Eanes decide to form 

• one, would cause serious 
■alarm among the small but 
diehard civilian and military 

_ etxreme right- 

Gen Eanes’s move’ comes at an 
- awkward time.' The Portu- 
guese Communist Parts’. 

• whose massive vote helped 
' return him to power for a 

five-year term in 1980, has 
been energetically agitating 
for the fall of the Balsemao 
government by means of 
strikes and mass rallies. It 
wants an early election called 
this year. . - 


£4aT3 


“ SOME WOULD like the 
Church in Poland to go to the 
barricades, but there’s little 
chance it’s going to make that 
mistake," an influential church 
adviser said recently. 

Indeed, Archbishop Jpzef 
Glemp, the head of the Church, 
seems to have chosen a policy 
of working by stages to salvage 
as much as possible of the 
freedom gained since the 
Gdansk agreement of August 
1980 and lost with the intro- 
duction of martial law on 
December 13. 


Spain plans 
electronics 


Irish to increase spending 


BY BRENDAN KEENAN IN DU BUN 


industry 


By Robert Graham in Madrid 


AFTER ^LENGTHY delays a 
•lCPman- ;■ commission w as '■' hK 
augurated -formally yesterday 
to 'draw - up Spain’s first national 
electronics plan. Despite many 
public. Statements on the neces- 
sity. of.'developing a coherent 
eTeeixtflncs .industry in Spain 

Hus is - the .first tangible evi- 
dence of movement 


IRELAND’S PUBLIC sector 
pay and pensions -bill will rise 
by 18 per cent this year, accord- 
ing to pre-budget estimates 
from the Department of 
Finance. The -total current 
spending will top Ifobn 
(£4.ibn) far the first .time, an 
increase of .16 per cent on the 
1981 figure. 

“ The' estimates Show the diffi- 
culties facing the Government 
in next week’s budget in trying 
to close the current deficit, now 
running ' at ■ over I£80Qm 
(£655m). & year. 


The 16 per cent increase 
comes in spite of the Govern- 
ment’s assumption that there 
will be no special pay increases 
in the public sector this year 
and its plans to cut subsidies 
to local authorities the state 
transport service, and private 
health patients. ; 

The estimates also signal a 
return to some form of charg- 
ing by local authorities follow- 
ing the abolition of domestic 
rates by the previous Govern- 
ment Local councils will hare 
to raise I£14m (£lL5m) 


Mgr Glemp’s policy assumes 
that General Wojciech Jaiu- 
zelski, the Prime Minister, is 
sincere in his promises to con- 
tinue with reforms. It aims at 
; helping him stick to his word. 

! It accepts that the establish- 
ment contains some figures who 
are even more hard line than 
Gen Jaruzelski and are keen to 
i screw the clamp a little lighter. 

Church policy accepts that 
martial law was introduced as 
a show of force designed to 
mask the weakness of a Com- 
munist system which bad 
become discredited in the eyes 
of the population. 

Having taken the risk of roll- 
ing out the tanks, the last thing 
the authorities will want to do 
is to make concessions under 
pressure, the Church assumes. 
By calming the popular mood, 
the Church is giving Gen 
Jaruzelski the chance to get on 
with easing restrictions. 

Mgr Glemp admitted to a 
recent visitor from the U.S., 
Senator Larry’ Pressler. that he 
feared discontent in Poland may 
explode into civil war. This 
could occur, for example, against 
the forthcoming price increases. 
The risk of bloodshed is ever 
present in church thinking. 

The Church's style is to put 
demands in private talks with 
the authorities and only speak 
out when results are slow in 
coming. “ There must be pres- 
sure. but it has to be 
moderated," church advisers 
argue- 

Thus in a sermon last Sun- 
day in Warsaw, Mgr Glemp 
spoke out against continuing 
arrests, “even though so many 
internees are waiting 1o be 
freed.” He criticised the sacking 
from the Communist Party and 
industry' of those deemed dis- 
loyal and the military authori- 
ties’ policy of forcing people to 
sign loyalty pledges. 

He called on the outhoritics 
to put forward a “plan of 
action’’ for a way out of the 
present situation. But he also 
called for dialogue and unity, 
for conciliation and a change of 
heart and he offered the services 


of the Church in restoring con- 
toots between rulers and ruled. 

The future of Solidarity is a 
central issue for the Church. But 
here the Church is taking the 
line that the union, when it 
resurfaces, must shed its politi- 
cal ambitions, rethink its future 
policy and stick to union tasks. 
Indeed the defiance of Mr Lech 
Walesa. Che Solidarity leader, 
and other members of the union 
leadership still interned is some- 
thing of an embarrassment, as 
Mgr Glemp admitted to Mr 
Pressler. 

The fart that there is little 
sign of such a rethinking of 
policy by Solidarity is holding 
up talks on the issue. In any 
case, the Church has reportedly 
got the authorities half way to 
agreeing to hand Mr Walesa 
over. 

“The Idea is that he would 
stay somewhere in the country 
on Church property with a dis- 
creet official presence,” a 


.to, tone down' his recent out 

spoken: statements about thi a ... 

situation, there. • '• : ’ • 

There is a risk that th< 

'Church - •could be- out 
.^manoeuvred-in this subtle garni 
' to -regain losft ground. But tar 
Church has. another important 
way of bringing pressure to bea i , 

on the authorities, because this CBEVCHVW^-* 
year is the fiOOth'aimi versary oi 
■ the installation: Of the 1 hol> ......rv-u, 

• picture of the : Blade Madonna “ 

... at the shrine: of Czestochowa 
The significance of the, shrine ur - 

and the picture itself ih’PoHsh LOiS 
national consciousness ' canno ; 
be underestimated -The annual 
ceremonies, at the shrine, which 
culminate in: August ■ normally 
' attract hundreds of thousands of 


worshippers. •-^’RrisKyear, there 

agreeing to hand Mr Walesa Archblsbop JOzef Glemp: Chttrch pOUcy accepts tto martiai “ ' ^f^ nuptial "jarw ' wa- 

“The Idea is that he would law wa » irtrodfle « d »» **<>«» maskCommunist imposed, ^the authorities had 

ine idea is cnat ne wouia system’s weakness. ■ ....■• agreed that the PoW Shoulr' 

stay somewhere m the country .. .. * 5QO - 

on Church property with a dis- . .. < ^ eremom ^ s 

creet official presence.” a at the meeting that it is back- developments throughout the Two'Ll- 

church source says. “HriUst of ing off -in its loyalty pJedges country rad some of the niore 

visitors would be agreed with campaign. radical churchmen like Bishop w«*®^ ^author! 

me authorities.” The meeting between Mgr Jgn«y TeWmk from 


But talks are going slowly in 


Wareaw for another reason. The January 9 signified mutual re- Henryk Gcdbiriowicz from their ijosm 
Nato demand that Solidarity be. cognition and broke the isola- Wroclaw will press for a r* 
restored has complicated mat- tion of the military authorities, toughly . worded ^ comunique. t - __JL. 
lers. The issue, , church advisers Last Sunday, Polish radio - re- Even if Gils Is issued, tile main Another 
reason, has become a point of sumed broadcasts of mass, an- lines of a moderate Chun* 
honour between the two blocs, other sign of normalisation. poticy have already been de- “ h _ t Po7 "r*"j 
That makes official concessions The Church takes the view cided. . t . mad # wnS 

difficult. that if progress cannot be made ' Later an the week. Bishop “ V™, J; 


.- from 
for a 


their position. The prospect i 
a- tempting one for tb 


41 


That makes official concessions 
difficult. 


tven n ims is issueu, me mam , _ 

lines of a -moderate Church 5L,S' C ^ r - author 

po&y toe already been de- L5 1 


Meanwhile, formal contacts on the Solidarity issue, then it 
are being re-established be- is willing to try to resolve 


SJ- • Tttat conscript Army i 

Later an the week. Bishop SSlfa ^ ^ !gr6 2f extent c 


tween Church and State. The other problems. 


Bronislaw Dabrowrid, the seer©- countr] 

l ary of tbe Bishops’ conference ' chUrcl1 influence ] 

is due to travel to Rome to stronB€5t ’ : • 


IWtCU VllUiUI OUU iUC VUIUi ffAVVIVliiOa IW WT 'MViUU UU - - ' • . . »j> • • • ’ 

high level mixed commission This week, the Bishops* con- report to the Pope, who will 


mgtl J«r»n IUIACU LVUUlliasiVU * •>«» " uit vuu- jcjniii iv LUC i W 1 IU nw ♦naatW -■ - \ ] 

meets this week for the first ference -is due to meet in. War- then have to decide whether r'gexner as- a - <nstnph ued ford 


time since martial law. The saw for the first time since the prospects for improvement in 
State is expected to announce dampdown. They will report on Poland are good enough for Wn i 


because, .by- large; . it .ha 


Poland are good enough foir Wri t .uot oeen oraered to take- dirq 

.. part ^to repressive action; Tip 


Carrington warning over debts 


role : has-., been", left ’-to specij 
police riot hattailems. - The ml 
of discipline, propaganda .ah 


fear of disobeying orders Ha 
kept the Army- together and j 


BY -OUR FOREIGN STAFF 


POLAND WILL receive no 
Western help in rescheduling 
$2,Ibn of its official debt fail- 
ing due this year until it lifts 
martial law, frees those 
arrested after the December 
crackdown and starts a 
dialogue with tbe Solidarity 
nnion and other 'opposition 
groups, Lord Carrington, the 
British Foreign Secretary, 
said yesterday. 

Speaking to (he Commons 
Foreign Affairs Committee in 
London be established a 
direct linkage between Wes- 
tern aid and democratic 
progress In Poland. Last week 
Nato foreign ministers had 
merely said that negotiations 
on Poland’s debts would he 
suspended 

He also made it dear that 
Britain and other Western 


countries had reservations 
about Poland joining the 
International Monetary Fund 
under present circumstances. 

“ There is no need to make 
a decision of whether we 
oppose (this)," he said. “If 
things move and we get a 
response. Our attitude might 
change.” Poland applied to 
join the Fund in November, 
a process usually completed 
within a year. 

This position by Western 
Governments could bring It 
into conflict with bankers - 
who would welcome Poland 
being required to submit to 
the IMF’s disciplines. " He 
guessed that the most Poland 
could look for from tbe IMF 
would be $3bn spread over as 
long as five years, which . 
Mould be “ comparatively 


small " in relation to its total 
debt 

Lord Carrington said that 
the West would he raising the 
question of Poland at minis- 
terial level with the Eastern 
bloc in Madrid on February 9 
when the protraeted Helsinki 
review conference is to- 
resume. Nato’s own precise - 
response is td be settled in' 
Brussels where top economic 
officials are to start raHra on 
Saturday. 

Future 'sanctions would bo 
concentrated - .against • the 
Soviet Union, saicUhe Foreign 
Secretary. Though relatively 
unoptimistie- about the effect 
they might have, he said tba* 


control of the situation. But q >*. 
6pen,' clash with' the Ctiuro I "" 
could undermine ‘.that. It is-: i 
risk 'the authorities are loatfii 
to take, -tv " . 'k 
M eanwhile the Church -J i-. 
busy helping, people who hav § 
suffered from martial-, law i t-fi 
the grass-roots Uvet’ iSs p-f? 
Glemp' has told Bishops to' st • 
.up; aid-to-internees commItt« S‘'?.r 


in each- diocese. Some parisftf = 

are , taking ; responsibility fd R: j 




local : families, ; members i 
which have been. imprisoned 4 
■arrested. ’ =■- - - - 

■ Lp addition, there are masse 
for the interned. - Last^Sundai 
Lifip 'St" Stohisla 
-Kosta Cimrch . to Warsaw bel 
such a-' -mass:-'-' ,It ., was . .wej 
attended and jshoived . th^ 


the West bad succeeded in \. people care. That -mood, pa 
to Moscow, church'; sUpport. is" i: diffioil 
as. it had ■ after tire Soviet . mmhinatinn "fni-" T+Un. - n ii.-tai< 


as. it had after the Soviet. combinatiam/_fdr ^the “milItai: 
ihvarion of Afghanfetan. - ‘ authorities ito ^ heat ' - 


lie commission, led by Sr 
JPse Angel Sanchez Asiain, 
head of tiie Banco de Bilbao, 
will attempt to balance the 
closely interlocking interests of 
the public and private sectors 
and try to establish those areas, 
where. Spanish concerns can 
operate either through develop-, 
ing indigenous technology or 
through' licensing agreements 
with foreign manufacturers. 

Spanish industry presently 
covers around 22 per cent of 
total needs in this sector, 
valued at Pta 298bn (£1.6bn). 
The principal clients are Tele- 
fonica, the national telephone 
monopoly, ■ the Defence Min- 
istry and the social security 
services. 


Diffident Koivisto promises Finns change of leadership style 


BY WILLIAM DUUFORCE, NORDIC EDITOR. IN STOCKHOLM 


One of the basic problems 
until now has been that Stan- 
dard Electrics and Marconi, the 
-main electronics companies, 
have been largely dependent for 
orders on Telefonica, which is' 
also "a shareholder. For the 
past two years they have been 
in difficulti es because Tele- 
fonica's development plans have 
been either delayed or reduced. 
Latterly the state holding com- 
pany, INI, has earmarked this 
sector as a priority and will 
play an Important part m the | 
commission. 



LESS INTERFERENCE in 
domestic politics a very differ- 
ent style of leadership and no 
change in foreign policy. This 
is what most Finns expect 
from Mr Mauno Koivisto who 
is virtually assured of becoming 
Finland's first Soaalist Presi- 
dent next week. 

He will take over from 
President Urho Kekkonen 
whom illness forced to resign 
last October at the age of 81 
after he had directed Finnish 
foreign affairs and dominated 
domestic politics for more than 
a quarter of a century. 

Mr Koivisto (581. a Social 
Democrat won a great papular 
victory and took the excite- 
ment out of the presidential 
election in its first phase last 
Sunday and Monday. The voters 
put 145 Social Democrats into 
the 301-membcr electoral col- 
lege which will choose the 
President next Tuesday. 


Mr Koivisto (left): popular 
choice 


After the result became 
clear on Monday evening. Mr 
Kalevi Kivistd, the People's 
Democrats candidate, said he 
would back Mr Koivisto in the 
college. Mr Aarne Saarinen, 
the Communist Part}’ leader, 
added his endorsement. The 
People's Democrats are an 
alliance or the Communists and 
Left Socialists. Mr Koivisto 
needs the support of only six of 
their 32 electors to secure the 
presidency. 

There has been much specu- 
lation about how his election 
would affect Finland’s crucial 
relations with the Soviet Union, 
with whom he has little ex- 
perience in dcaline although he 
speaks Russian. The President 
directs foreign policy and Dr.. 
Kekkonen has been a master at- 
conducting business with * 
Moscow.- 

The Soviet Union. has regu- 
larly referred to the necessity 
of maintaining the good rela- 
tions based on the 1948 


treaty of friendship and co- 
operation and Dr Kekkonen:* 
policies. Mr Koivisto has care- 
fully agreed, as have the other 
seven presidential candidates. 

For Moscow, however, he is 
probably something of * atv 
enigma. His habit of thinking 
aloud and of pursuing an idea 
for its intellectual rather than 
political interest ‘ can .present 
problems. 


The election is a severe set- 
back for the non-SociaIJst 
parties who traditionally enjoy 
a parliamentary majority and 
took 58 per cent of the voles 
in the 1979 general., election. 
The Left -polled more than 54 
per cent in the presidential 'polL 

The non-Soeialists had. hoped 
-to get enough electors into the 
college to stop Mr Koivisto on 
the first and second Ballots and 
to horse-trade their way to a 
common candidate who canid 
Deat him on the third ballot. 

They tried to scare their 
regular voters into line by 


warning that Mr Koivisto could 
capitalise on his- victory by call- 
ing a general election which 
would sweep the Left Into 
power. He himself, repeated 
on Monday that he hoped the 
present ■ ■ Centre-Left Govern- 
ment, of which he is Prime 
Minister, could 'be reconsti- 
tuted and continue In office 
until the election due in 1983. 

MT Koivisto’s unexpectedly 
large win is due to his personal 
standing with the electorate. His 
candidates to the electoral col- 
lege pulled in more than 43 per 
cent of Ihe vote; in the last 
general election his.. Social 
Democrat Party— Finland’s big- 
gest— polled, only 24 per cent 

Most commentators agree that 
It could no^.nope to repeat this 
performance! in a general elec- 
tion. 

Mr Koivisto’ s dose rapport 
with .the -public " has many- 

dngrcdlentsrmasrdf tbgm stem- 
ming from, the difference 
between tes personality and that 


oTDr Kekkonen. -.i ■ ■ Finland a ' amrse tha 

TJe old President is 'stiU dephrfed. Jbr- mSte/ fror 
highly respected but FfoaYhave 
indicated a desire ftir a- change Sweden. ••••«■ 
from Jus severe, paternal: con-..; .4^ th^jpst^.large.r unm 
troL . . - . ■ -^ ; . P^nei^Taian; the -Swecte 

Mr Koivisto fra* ■ ap - irntp^ '.WPdld jifleflerae-. *. 1hft ---Flnnis! 
cable Socialist background. Hie r-t^covered - mor 

was a working . ^.-'recesrion o 

after working jn theidocka^ won' ania-1970s.lhe^ifi^ic learn 
nomseM a university- educa tion. 'Mr.- ;&oivisto' 

He gained his Phi): ba a thesis ■ ;and > ;<poooani 

about serial condritous in -the 

Port of Teufel. On the - o&er tor hi 

hand - be : has never held fan.' 



open, cmndring attitude 
tical-'ipibfetems. i Be^dote^tufti- 

force jbfs views tfcWMfe *&t to* 'A 
learnt to ‘compromise 

enalte ne . - 


— V- •— -tu. 

spells as Prime h&^wderrin a 
coalition. -- - i ; ^4 .T - . ■] 


oTYutir over his. forehet 
Q fe . sod-. to -- diBTfm '-. tffpmtf 
^■^^.axiiffidcnt^abli 

eriopiowrfrast to. -feat of D 


As ,; r • 

Finland , hi ti» ^ he - _ .. — 

coUeagues in the W 

but which were . ^ y ” 'addhtoMt mHW 


i. 







January 20 1982 




ENERGY REVIEW 


..-•i*.v:-n 






*?Vv ■£?>£;>; f ■;'.;« 


'■if-' -■■■:' : -_.- 





effort to make oil and gas from coal 


By Kevin Done in Frankfurt 



a 


b u *(- 


toe:. 


A N5«f4 
o£ gar ind 
Gemranjs.1 
with'' 

.try's 
RJieu 

tiy’s^Vj 

to^gtossa 


tcoiin- 
cale 
Modern 


ahead 
from 
main- 
plant 
'. into 
* for 
of mAhanol, an 
ijempiamicaL — 
lercWly viable 
- pro-, 
ral gas and 


;g° 

^l^cbnrpa 

. _ _. as 

.-important 
is already 
cqcnpared jffith. 
cesses basedlon na 

fedlVolL; j* , 

- I-Tlie :f&eiiibraunf imtjve is as 
yet<m3s: a,yiodes»oeginning. A 
return- to ihe hfrday of coal 
conveiskmireacrM; during the 
years of 'the laird- Reich- — in 
1940. . the:, oomtry 1 produced 
around 5m. tones of . oil pro- 
ducts. from co / and lignite — is 
hardly ;ye£ i 
With coal h its only major 
domestic, erafer resource, how- 
i ever, .Westry5ermany has little 
' Choice st io continue- to give, 
ty. first jiijftaity fa its energy - 


plans. 'Bonn is still planning to 
around Diif 2bn on. pro- . 
motli^g coal gasification and 
liquefaction in the years'- up to 
uie end of 1985. ' 

The Government" accepts that 
the volume; of oil and gas pro- 
ducts to' he gained .from "coal 
. In Germany will have only 
a minimal impact; even in . the 
long-term, on the country’s total 
fuel- supplies.' " 

,. As part of the Federal Repub- 
lic's overall energy, plans, how- 
ever, schemes lor . the conver- 
sion of coal, particularly into 
oil products, are . seen as one 
way of opening greater access 
to foreign, coal reserves. Equally, 
it is hoped that the demonstra- 
tion of such technology at home 
will provide a springboard for 
the country’s process . plant, 
makers-, to gain major industrial 
plant orders abroad in countries 
where coal can be produced 
much more cheaply than, in Ger- 
many- itself. 

The . Federal Economics • 
Ministry is currently, consider- 
ing. seven gasification projects 
pnt forward by German industry 
:r— 11 we originally submitted — 

- hot pressure oh the federal bud- 
get and doubts about toe merits 


of some schemes suggest that 
Bonn will finally give state sub- 
sidies to no more than three. 
Final decisions are expected, by 
the early summer. 

The Ministry has allocated 
nearly DM lbn in its medium- 
term budget planning for 1982- 
1985 for the funding of com- 
mercial-scale coal gasification 
projects— DM 40m this year,. 
DM 150m in 1983, DM 300m in 
1984 and DM 500m in 1985—. 
although the protracted horse- 
trading between the parties in 
Bonn over future public spend- 
ing cuts could still reduce the 
scale of this aid in later years. 

For the chosen projects th'e 
Government has indicated, how- 
ever, that it will pay up to 40 
per cent of the investment costs, 
or up to 50 per cent in special 
cases. 

In addition, it will offer 
limited subsidies for tbe use.of 
domestically produced German 
.coal. It has agreed to pay up to 
DM 60 a tonne for a maximum 
period of five years to make up. 
the difference between German 
and imported coal prices: 

Steam coal from the Ruhr is 
currently costing around DM 239 
a tonne (of coal equivalent ) 


compared with DM 157 for 
Polish. Australian and South 
African imports and DM 175 
for U.S. coal and DM 147 for 
Canadian coal. 

The one project where con- 
crete progress has been made 
is Rheinbrauo's scheme for con- 
verting around 2m tonnes a year 
of lignite into ibq cubic metres 
a year of synthesis gas (carbon 
monoxide and hydrogen). Con- 
struction of this plant has’ begun 
and the first stage should be 
completed by 19S4. By the time 
it reaches full production in 
1988 it should be producing 
enough gas to manufacture 
around 350,000 tonnes a year of 
methanol and will replace the 
equivalent of 500,00.0 tonnes a 
year of crude oil. 

Rheinbraun's claim' that the 
DM 600m project is already 
commercially viable is only pos- 
sible, however, given the very 
special configuration of the 
group's existing lignite process- 
ing plants and allied refineries. 

The projects that appear 
most likely to attract federal 
financial aid are those put 
forward by Ruhrkohle/Ruhr- 
chemie, KJockncr and Shell, 
which all involve the testing on 


a commercial scale of untried, 
modern processes: 

RuhrkohJe. the country's 

dominant coal producer, and 
Ruhrchemie, owend two-thirds 
by Hoechst, the chemicals 
group and one-third by UK. 
Wesseling, have approached the 
Government for aid to support 
plans for building a DM 190m 
plant at Oberhausen in the Ruhr 
for converting 250.000 tonnes a 
year of German hard coal into 
400 m cubic metres of synthesis 
gas. The gas will be used as a 
chemicals feedstock. 

Klfickner-Werke. the West 
German steel and mechanical 
engineering group, has formed 
.the first of a planned series of 
joint ventures with CRA. the 
large Australian- industrial 

group, to strengthen its bid to 
enter the. coal gasification 
market. 

It has developed its own iron- 
bath process for producing coal 
gas. an industrial gas for burn- 
ing, which it aims to use at its 
Bremen integrated steel works 
to replace much of the natural 
gas and fuel oil burned at tbe 
site. The gas will be used for 
firing furnaces. Kidckner esti- 
mates the cosrs oF the plant at 
nearly DM 600m. It plans to 


gasify imported coal — possibly 
supplied by CRA. from Australia 
— producing around 1.8bn cubic 
metres of gas a year from some 
- 860,000 tonnes of hard coal. 

The third project which 
appears ‘to be winning favour in 
Bonn is Shell's proposal for 
building a DM 670m . plant at 
Wilhelmshaven on the North 
Sea coast for processing 324.000 
tonnes of -imported coal into 
methanol. The plant could pro- 
duce around. 600m cubic metres 
of synthesis gas and 215.000 
tonnes a year of methanol. 
According to Shell, planning 
the plant could form the first 
-building block of a potentially 
massive gasification complex for 
converting up to 5m tonnes of 
hard coal a year. 

Shell has taken an option on 
a 279-acre coastal site, hut there 
appear to be growing doubts in 
the company as to whether the 
time is- ripe for embarking on 
such a massive investment. 
Within the group there are 
rival plans for building a coal 
gasification plant at Moerdijk in 
the Netherlands to produce a 
burning gas for use as a power 
station fuel. Even with full 
Government backing, the 


Northern German plant would 
remain “sub-commercial." says 
Shell. 

The location offers one of the 
few ideal coastal sites in Ger- 
many. however, for large-scale 
coal imports, and the scheme 
would provide Shell with a first 
opportunity to test its new coal 
gasification technology on a full 
demonstration scale. 

Bonn accepts that the com- 
mercial risks of all these pro- 
jects are so great that none will 
be built, at least in the foresee- 
able future, without stale aid. 
The Federal Research and Tech- 
nology Ministry has spent 
DM 970m since 1973 on .sup- 
porting coal conversion pro- 
jects. As a result. Germany 
has seven gasification pHot 
plants in operation, p further 
one in construction, and two 
coal liquefaction -pilot plants 
(built by Ruhrkohle/Veba and 
Saarbergwerke/Deulsche BP) 
were commissioned last year. 

The Research Ministry has 
itself earmarked some DM 950m 
for the years 1982-85 for coal 
conversion R and D, but most 
of this will help to fund the 
further development of coal 
liquefaction processes, which 


Ike Westfield Reactor 

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Britain extends its lead in slagging gasifiers 


’’THE BEST process currently 
available in the world for the 
manufacture of substitute 
natural gas from coal.' 1 is how 
Sir Denis Rooke, chairman of 
British Gas. described its new 
gas-making technology to the 
Parliamentary and Scientific 
Committee. 

This technology is the in- 
elegantly-named slagging gasi- 
fier, where Britain has taken a 
40-year-old German gas-making 
invention and adapted it. into 
a much more versatile process, 
for malting substitute natural 
gas (SNG). 

The latest demonstration of 
the slagging gasifier took place 
last month, when engineers 
from a dozen countries were 
invited to British Gas’s West- 
field Development Centre in 
Scotland to see and hear— for 
jt rumbles and roars impres- 
sively — a 6 ft diameter reactor 
processing coal at the rate of 
over 300 tonnes a day. 

Already a record-breaking 
run has been achieved by the 
reactor, recommissioned last 
summer. But the engineers were 
aiming for what they call a 
“ long demonstration run ” of 
up to three months- of un- 
interrupted operation. In fact. 


they achieved 90 days of opera- 
tion with some interruptions 
due to causes outside the 
slagging gasifier itself. 

British Gas is offering licences 
for' plants making SNG from 
coal, of which the slagging 
gasifier would be the first and 
most crucial stage. It is propos- 
ing reactors of up to 8 ft 
diameter, gasifying up to 600 
tonnes of coal a day. And it is 
offering “ full commercial 
guarantees.” 

According to Mr Ray 
Sharman. director of British 
Gas's International Consultancy 
Sendee, the Westfield reactor 
is the only plant of its type in 
the world. “ I think we are at 
least four years ahead of our 
corapetiiors." The project has 
cost £30ra over eight years. Of 
this total, the current develop- 
ment programme accounts for 
about £I4ra. The cost is being 
shared between the EEC (40 
per cent),. British Gas and 
Lurgi. 

Tbe technology began before 
the Second World War, in the 
laboratories of Lurgi. a German 
company, now the engineering 
division of Metailgesellschaft. 
Lurgi developed a fixed-bed 
g 2 sifier to convert the extensive 


lignite (brown coal) deposits of 
what now is East Germany. 
After the war Lurgi turned lo 
the hard Ruhr coals but ran into 
technical and economic difficul- 
ties with its technolog)'. 

Britain's gas industry picked 
up Ihe technology with toe idea 
of trying it under “slagging" 
conditions, which is to say that 
the industry believed it could 
operate it hot enough to melt 
the non-combustible part of the 
coal to a' molten slag, which 
would not clog the reactor. This 
was first done on pilnt-plant 
scale at the Midlands research 
station of British Gas in the 
early 1960s. 

On a development programme 
largely underwritten by U.S. 
contracts. British Gas revived 
toe technology in the early 
1970s. Westfield, formerly a 
•' gas works " making old- 
fashioned town gas by the Lurgi 
process, was transformed into a 
development centre. One of its 
gasifiers was extensively modi- 
fied into a demonstration slag- 
ging gasifier. 

The original reactor was re- 
lined. to resist the higher 
operating temperature, reducing 
its interna! diameter from 9 ft 


to 6 ft. Beneath the reactor 
British Gas engineers have 
added a sophisticated system for 
lapping the slag. The complete 
gasifier, including its coal feed, 
is shown in' the accompanying 
sketch. 

Dr John Gray, director of re- 
search at British Gas. describes 
the trial as a “real-life demon- 
stration” with British coal. The 
system is proving remarkably 
robust, he claims. 

Interruptions through minor 
breakdowns of ancillary plant 
have not upset the overall per- 
formance of the reactor, which 
can be started from ‘.'empty” to 
produce gas in only four hours. 
It can be shut down to “hot 
standby” in minutes, held in 
this state for at least 48 hours, 
then restarted. This is the kind 
of cycling expected of a produc- 
tion process required to keep up 
the pressure of gas supplies. 

Meanwhile, another of the 
four original Lurgi gasifiers at 
Westfield is being modified to 
make a much bigger slagging 
gasifier, of 8 ft diameter, cap- 
able of consuming more than 
500 tonnes of coal a day. The 
corporation expects to have this 
in operation hv the end of 1983. 
And it is hoped to find ways of 


usirig the gas. rather than flar- 
ing it. as is being done now. 

A third Westfield gasifier is 
to be developed into a different 
version of the slagging gasifier 
when -funds are available. The 
aim here is a reactor capable of 
handling • run-of-raine coal, 
which with the most advanced 
methods of mechanised mining 
can contain up to 50 per cent 
of coal dust (or finesj. For some 
while British Gas researchers 
have bad ideas for a composite 
gasifier combining in one rather 
complex reactor toe features of 
both fixed-bed (Lurgi) and en- 
train ed-bed gasifiers. 

The composite gasifier has 
now been abandoned. In its 
place is a plan for an experi- 
mental coal gasification plant at 
Westfield. At the heart of this 
plant will be a slagging gasifier 
which burns high proportions 
of fines, partly by injecting the 
coal dust through toe feed 
hopper with lumps of coal, and 
partly by injecting it through 
the tuyeres with the oxygen. 

For this demonstration a 
reactor of 3 feel diameter is 
envisaged, fully-instrumented, 
consuming about 100 tonnes of 
coal a day. The gas will be 
used tn optimise later proces? 


are still a long way from- com- ' 
mercial realisation. As Bonn 
points out: a litre of petrol from • 
German coal would today still 
cost nearly twice as much tn 
produce as a litre of petrol 
refined from crude oil. 

West Germany’s main. hopes 
for large-scale projects abroad 
are being concentrated on 
Australia. 

In a joint DM 10m German/ 
Australian study Lurgi, Rheiu- 
braun. Ruhrchemie, Ruhrkohle, 
Saizgitter and Uhde joined with 
the consulting firm Imhausen to 
prepare a study, published in 
November, into the potential 
for coal liquefaction iir Aus- 
tralia, hoping to open up a hig 
new market for German -coal 
technology. Massive investments 
will be needed, however, -before, 
the huge coal - and lignite 
reserves in Queensland, New 
South Wales and Victoria could 
lie exploited in this way. and! 
the West Germans are also run- 
ning into other problems. The 
Japanese are also pushing hard.i 
for a stake in this new market 1 
and have captured toe first, 
trick from the Germans by 

already starting construction on 
their first pilot plant in Vic- 
toria. 


stages— including gas dean-up 
operations— in toe conversion 
of coal into SNG. Part, of the 
programme, already in hand, 
is to determine just how 
much fines the slagging gasifier 
can handle in this way. 

Inevitably, the slagging gasi- 
fier is being questioned as a 
potential source of environ-i 
mental pollution. Many may be 
required in the next century 
to replace North Sea sources of 
methane. But Dr Gray is con- 
fident that the slag itself— 0.55 
tonne for every 50 Tonnes of 
coal consumed — -will present no 
problem. It emerges from Hie 
water quench as a clean, black, 
glassy frit. 

Research by the corporation's 
London research station has 
confirmed that the slag has pro- 
mising possibilities for the 
cement industry. Sulphur can 
also be reclaimed and sold. 
British Gas claims. Moreover, 
its experiments suggest that 
concentrated liquid effluents 
from such a process can be 
purified on-site by bio- 
technology. 

By David Fishlock 

Science Editor 


- ■ ~i : . • ' 
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•*-. . . - 







ople have discovered how to 
money out of thin air. 


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In a recent article, The Times described the heat 
pump as a ‘somethmg-for-nothing technology’. 

. Little wonder; then, that more and more commercial 
operations are tumingto electric heat pumps . to solve their 
heating requirements. 

AD the concerns appearing in this advertisement have 
found electric heat pumps to be highly cost-effective, 
regardless of whether they are being used to heat a small 
.High Street shop or a multi-storey building. 

Even in mid-winter; an electric heat pump install- j 
ation extracts useful heat from the environment - 
literally from thin air And with an output of around 
two-and-a-half times more energy than it consumes, 
the heat pump can produce dramatic savings. 


-Then, when cooling rather than heating is demanded, 
electric heat pumps can amply switch over to provide a 
flow of cool, fresh air 

Bernard Hough at The Heat Pump and Air Condition- 
ing Bureau has a rapidly growing portfolio of electric heat 
pump case histories. 

If you send him the coupon or ring him on Freefone 
2282 , he will be delighted to give you the facts. 

And, of course, to add your name to that list 



KH 

Fbsi tn The Heat Pump and Air Condemns Bare*:, 
30 Mibank. London SWip 4RD. Please send me zT' 
the facts and figures on electric heatpamp -. 

Xame 2HP3/2 

Rasition 


Company Address 











Financial Times Wednesday January 2( 1982 


U S. PRESIDENT’S TRACK RECORD 




on snuling 


one year on 


BY REPAID DALE, U-S.-EDITOR .tN WASHINGTON 


FOR THE Tress photographers 
who cover the White House, Mr 
Ronald . Reagan is one -of the 
best U.S. Presidents ever. 

. The former cinema actor is an 
instinctive and enthusiastic 
performer in front of the camera 
and- is -always ready to oblige 
with -a- -special, highly profes- 
sional pose. There is just one 
problem. The' photographers’ 
editors are beginning to com- 
plain that every single shot 
shows him. smiling broadly 1 
even when hois announcing un- 
palatable news like budget cuts. 

That is part of the man’s style 
—there is nothing he. ..likes 
better than to. be, or at least to. 
appear to be, friends with every- 
one. But it is also true that in 
the course of his first year S* 
the White Honse he has had 
plenty to - smile about. The 
question that -Washington i£. 
asking -as he starts his second 
year today is; how long can he 
keep -it up ? 

Mr Reagan's first 12 months 
have in many ways been 
remarkable. He has shewn a 
mastery over Congress that 
maiiy political experts believed 
to be no longer possible in an 
age In which the President's 
power was thought to have 
de clin ed in face the of increas- 


ingly influential Congressional 
committees and special interest 
groups. 

Most notably, he has pushed 
through a highly controversial 
economic programme, even 
though the House of Represen- 
tatives is technically controlled 
by the Democrats, and scored 
a stunning last-minute victory 
a gain st all the odds on the sale 
of Airborne Warning and Con- 
trol Systems (AWACs) to 

.Sau£i Arabia in the autumn. 

- - He has done it partly by his 
persuasive charm, partly by 
exploiting his popularity and 
television skill, to appeal to the 
nation over the heads of Con- 
gress and partly by tough, 
classical political horse-trading. 
His cheerful recovery from' a 
painful assassination attempt at 
the end of March only added to 
tils charisma". 

He has shown himself, as Mr 
James Baker, his' Chief of Staff, 
put it this week, the most 
“ ideological " president of re- 
cent years. This bos tended to 
make him predictable. With 
certain exceptions, he has done 
exactly what he said he would 
do, and even some of his ideo- 
logical opponents respect him 
for it 

In foreign affairs, Mr Reagan 


Some souvenirs of the Reagan year: Taking the oath, dismissing air traffic controllers, showing off. new boots and welcoming a 


has been remarkably adept at 
getting on friendly terms with 
other world leaders — although 
he has yet to try his charm on 
Mr Leonid Brezhnev, the Soviet 
leader. 

He skillfully escaped from 
tight corners at the two inter- 
• national summits he. has so far 
attended — the seven-nation 
world economic summit in 
Ottawa in July and' the 22- 
nation North-South summit in 
Cancan. Mexico, in October. At 
the first, Mr Reagan evaded a 
public roasting by the Euro- 
peans over high U.S. interest 
cates. At the second he dodged 
similar treatment from the 
Third World over his fcussez- 
faire develop meat 'policies. - 

In a number of spectacular 
gestures, he has shown- the 
toughness which many Ameri- 
. cans expect of their presidents. 
The two most obvious were the 
shooting down of two Libyan 
fighters over the- Mediterranean 
in August and the sacking of 
the air traffic controllers, who 
challenged him with an illegal 


strike in the same month. . 

To Americans, if not the rest 
of the world, the downing. of 
the Libyan jets brought an out- 
pouring of national relief that 
the U.S. had finally accom- 
plished a mflitary feat effici- 
ently— after years of post- 
iVetnam agonising and the 
disastrous-prone term of Presi- 
dent Jimmy Carter. 

. It may not in itself have been 
a very 'glorious, exploit. But it 
seemed symbolic of Mr Reagan's 
U.S. — a re-awakening giant 
which enemies provoked at their 
peril 

Mr Reagan has none the less 
shown that he is no puppet to 
the powerful Right-wing forces 
which helped win his election 
in 1980— most recently, for 
instance, by refusing Taiwan’s 
request for advanced fighter air- 
craft so as not to upset Peking. 
He can, of course, afford to 
do- it. • There is no Democrat 
candidate on the horizon for 
whom -the moral majority is 
going to vote. 

But if these are the pluses 


of .Mr Reagan's first year, they movement against him. 


are nearly all balanced by a The glitter of the Reagan the vast majority — who want to 
real, or potential, minus. If White House, together with the see the country stron g^ again, 
he scored highly against Libya free-spending image of Nancy But it has also teiTiHed many 


over the jet fighter incident, he 
has suffered considerable ridi- 
cule over the alleged Libyan 
assassination squads which were 
supposed to have come to the 
U.S. to kill him in December. 


Reagan (probably the least of his allies, particularly m 
popular first Lady for many Europe. . even though me- 
years), have only helped to con- American Right tmnte - ^ s not 


tion of lepiiblicins and Right- : ;V - ^ 
wing Deiiocrats Villi© under 'p. £ 
increasing strain.’ while politi- 
cians turn increasingly to votef-Vy «,*.■- ■ 
getting gnss . roots issues - and-;.‘.;-:% 
shrink fron- the rigours of.- 


years;, nave omy neipea *o con- Aiaerroan ", ■ . 

.vince less privileged Americans nearly t°ugh_ enough, partfcu- 

that Mr Reagan represents- big terly over Poland. , . SS ff - 

business and the rich. Even the As m so many U-S. AJfknims- busing ue aead- 


■ J-Js 


U.D. iu iuu luiu iu wcvcuiun. uwiuivm «uu ms — — ,77. - r rn1 . - _ i. nrr • , -- _ 

-Few people believed the story capitalists of Wall Street have so tralions, political to-figmnng *as But it . irofld be wrong ^ to/ r .V ... k- _ 

■ E t«t — — -> far shown little faith in his been one of the hallmarks of Mr underestimate - the Tmderivlm? ... : 


— even the FBI confessed its 
doubts — and the hit squads now 
appear to have vanished just 
as mysteriously as they arrived. 

-Although he may have been 
devastatingly successful in push- 
ing bis economic programme 
through Congress, it retrains to 
be seen whether it is the right 
programme. With recession 
tightening its grip and 9.5m 
out of work, an increasing num- 
ber of Americans believe that it 
is not. 

His disdainful treatment of 


economic policies. 

Mr Reagan’s praised predict- 
ability can also be seen as 
obstinacy — as, for example, over 
his refusal to cut Into sacro- 
sanct defence spending in- 
creases or modify his income tax 
reduction programme, in spite 
of the insistence of many of his 
economic and political advisers. 


Reagan’s first year, tftie most support for sonekrf h 


Adviser, whose resignation was-., of his handling , 
extracted as painfully as a so 1 * dency. against 51\ 
tooth earlier this mon&h.- But. Mr Carter after 
scandals and allegations kur- office.:- Fifty. one 
rounding other influential - they believed Reagihoi 

t~i irinniT. government members have also hurt tire.economy so far. 

There is no doubt that many, contributed to Che Admimstra- surprising 60 per cent 

poor Americans are frightened lion's sligfatiy sleazy big business thought the Reagan 

and confused by reports of his image. ■ programme would ■ 

axing of social programmes, Mr Reagan is bound to fate help, the nation, 
the air ^Sffic^cmtroUmr while while many blacks regard him far greater difficulty^ As for Mr Reagan himselC ^ 
it appeals to the buccaneering, 35 J?*** 1, in Se appears to believe that as k3ng^ n jtpAr*k 

anti-union spirits of the south Hie toughness of his un- relations with « he keeps cmiling , hisvlnck mSS/v 

and west- has united the ore- ashamedly anti -Communist months ahead. W 1th themid- 35 • ne V-TT 

viouslj^flagging trade uiSon foreign policy may reassure term Congressional elections , will not desert fainu ' :j; j^^r-kV 

iifJ 



Lifeyaus pay $95m for 
Exxon’s abandoned assets 


BY PAUL BETTS M MEW YORK 


LIBYA HAS paid 595m (£5QmV 
m compensation to Exxon for 
the assets of the world's largest 
oil company in <Cbe north 
African country. 

The assets- include four oil 
concessions, a small refinery and 
a natural gas iliquefactipn plant 
Although their book value, is 
estimated at more than $l20m, 
the payment is significant 
because the" oil industry had 
earlier thought Exxon would 
receive no-compensation at-alL- 

Exxon decided to abandon aH 
Ms operations in Libya last 
November, a move which was 


condemned . in the strongest 
terms by the Government in 
Tripoli. ~ Exxon, at the time, 
gave no specific reasons' why it' 
had decided to withdraw from 
Libya afteF operating there for 
25 years; but -the -eft -industry 
suggested the company was con- 
cerned about the worsening of 
UiJ.-Lflbyan relations and feared 
reprisals 

Exxon had already consider- 
ably reduced. its purchases of. 
Labyan crude-’ because - of riie 
high price of the country’s oil 
in an increasingly slack oil 
market 


Savers prove 
reluctant 


By An stole Kaletsky in 
• Washington 

U.S. PEOPLE saved a smaller 
proportion of their incomes in 
1981 than in 1980. according to 
figures' released by the Com- 
merce Department yesterday. 
Personal savings fell to 5.3 per 
cent of disposable incomes ta 
1981 from 5.6 per cent in 1980. 
" The figures underline one of 
the major difficulties faced by 
the Reagan Administration. A 
big increase in personal savings 
in response to tax cuts has been 
predicted 

- But so far there has been no 
real indication, that US. citizens 
are inclined to change the 
spending and saving habits of 
the past six years. 


Benny Hill leads video 
assault on U.S. market 


BY IAN HARGREAVES IN NEW YORK 


BENNY HILL, the British 
comedian and master of the 
innuendo, is about to lead 
another export assault . 

Thames Television announced 
yesterday that one-hour video- 
cassettes of Hill's shows will 
be its first products in a new 
joint venture with Thom-EMI, 
which gives Thorn’s video pro- 
gramming division exclusive 
rights to sell tapes of Thames 
Television programmes in the 
U.S. 

The venture springs from the 
fact that Benny Hill’s plump 
grin and lecherous teasing are 


a regular feature of U.S. tele- 
■ vision. 

It was not always so, Muir 
Sutherland, managing director 
of Thames Television Interna- 
tional. recadls. His staff spent 
eight years showing Benny Hill 
dips to unimpressed U.S. tele- 
vision executives. Then in 1978 
someone thought of re-mixing 
bits of ffi-Il’s shows, which have 
been produced for over 20 years, 
cutting out the slower, connect- 
ing parts and delivering a series 
of rapid-fire snatches more 
amenable to frequent interrup- 
tion by television commercials. 


Pan Am chief 


expects rise in 
airline traffic 


NEW YORK— Pan American 
Wohid Aiways expects domestic 
airline traffic to increase by 
about 5 per cent this year on a 
revenue passenger mile basis. 

Mr Edward Acker, chairman 
of Pan Ann, said yesterday that 
industry • would record a 
“robust” summer and continued 
gains in the autumn. 

Mr Acker said international 
traffic would also show modest 
gains in 1982. Fuel costs for 
the industry would stabilise or 
perhaps shew a slight down- 
turn. Pan Am’s fuel costs per 
gallon would decline but 
overall fuel expenses would rise 
due . to higher consumption. 


Brazil falters iit straggle 
with foreign debt burden 




BY ANDREW WHITLEY IN RfO DE JANEIRO 


BRAZIL slipped back last year 
in the struggle with its foreign 
debt burden. Debt *. servicing: 
ate up 72 per rent of export 
earnings, as against 65 per cent 
■in 1980. ■ ; 

Net debt servicing in; '4 981 
amounted to $16.8bn f£8-9bn). 
Of this sum Interest payments 
were $10.2bn. more than 50 per 
cent above the dffiriil ^H-edio 
tion at the start of the year. 

Exports rose by 16 per cent 
to reach $23.3bn, despite dis- 
appointing commodity prices. 
But the impact of this gain was 
wiped out by record interest 
rates. 


- A healthy visible trade sur- 
plus of $L2bn helped to pri> 
duce.an Improvement in the 
current account deficit .'But 
Brazil’s external services ac- 
count wors ened , with the over- 
all deficit rising 22.4 per cent 
to $12bn_ .... :• * ...... ’ 

The Central Bank has given 
mo sign of changing its ex- 
ternal strategy,, -even though 
the 1981 aooounitS; represent a 
dear reversal of :ihe predicted 
improvement in Ube main indi- 
catars from . their previous 
worst, po^ in *1979. 


i 


■r • - - - 1 


-r- . 


OVERSEAS NEWS 


sco a 


Australia to change 
foreign investment 


BY PATRICIA NEWSY IN CANBERRA 


AUSTRALIA IS to ' tighten 
foreign investment rules' govern- 
ing minerals processing and the 
purchase of rural lancL 
Announcing the results of - a 
Cabinet review of the rules Mr 
./elm Howard, the Treasurer, 
s-.id that in. future foreign 
purchasers or rural land would 
have to prove .that their invest- 
ment would result in net 
economic benefit to the country. 

The move could affect institu- 
tional investors from Britain, 
such as pension funds, which 
have been investing increasingly 
in beef . cattle properties in 
northern Australia. 

In fixture, rural land 
purchasers will have to demon- 
strate to the Foreign Invest- 
ment Review Board, the Govern- 
ment's watchdog body, that new 
techniques or developments will 
be introduced which wiH benefit 
Australia. 

Id minerals processing, the 
Government will in future be 
seeking-, “maximum oppor- 
tunities for Australian equity." 
At present- minerals processing 
is -regarded as manufacturing 
and. : tberofore does not come 
under the Government’s require- 
ments bn new mining ventures 
for. 'at. least 50. per cent Aus- 
tralian ownership and control, 
except -for uranium mining, 
where ibe level is 75 per cent 
Australian equity. 

- Mr Howard said that in view - 


of the substantial- amount of 
-capital - involved -in minerals 
processing, it would be inappro- 
priate to specify a rigid Aus- 
tralian equity figure. But in new 
refining' and smelting ventures, 
rlie Government wants to see 
more Australian participation 
than in the past. 

As most' of Australia's 
minerals processing companies 
are multinational mining com- 
panies. the Government has 
some power' to withold valuable 
mineral prospects if it feels the 
' companies are not taking 
account of the Government's 
wishes. - . 

The changes in rural pur- 
chase rules are designed to dis- 
courage absentee-landlords and 
speculators from abroad. Rural 
groups claim they are pushing 
up land prices .while allowing 
properties . to deteriorate, and 
reaping windfall profits from 
tire rezomng of rural lead for 
urban use. . 

Mr Howard described yester- 
day's changes. as “ fine tuning " 
of what was otherwise a very 
successful foreign investment 
policy- He stressed that foreign 
capital was needed and wel- 
come in Australia The Govern- 
ment is expecting foreign in- 
vestment in the fiscal year to 
June 30 to be around the same 
as last year's record A$6.6m 
(£3.9m). 

Tariff call and uranium pact. 
Page. 5 


Philippines sticks to hard 
line on Japanese tanker 


BY DAVB> DODWHJ.4N MANILA 


PHILIPPINE Government 
officials 'yesterday insisted that 
the- Japanese tanker Hegg. 
sttafed by Philippine Air Force 
aircraft last Friday, was still 
suspected of having tried to 
land terrorists and armaments 
on the troubled southern 
island , of Mindanao. 

They claim the 5,300 top ves- 
sel, supposed to be carrying 
chemicals, was flying no flags, 
was far off its claimed rout® 
from Singapore to Pusou, in. 
South Korea, refused ^6 answer 
challenges __ from ■ -either the 
Philippine Navy or .Air Force 
after entering' Philippine tern-' 
to rial waters off Davao del Sur 
in southeast Mindanao, and 
tonic clear evasive action to 


escape boarding. 

Mr Carlos Romulo, the Philip- 
pines’ Foreign Minister, said 
yesterday that the “intercep- 
tion,” in which two ctewmen 
on the Hegg were understood 
to have been injured! “was a 
legitimate . exercise of our 
right .to protect our national 
security? 

His belligerent stance under- 
scores the extent of Government 
concern over the growth of 
terropst activities in Mindanao. 
Moslem, separatist guerrillas, 
members of ' the More National 
Liberation ■ Front CHNLF); 
have been waging a war of 
independence for nine years in 
the predominantly Moslem 
areas of western Mindanao. 


Ghana hopes 
to revive 


economy 


By Quentin Peel, Africa Editor, 
’In Accra 


THE REVIVAL of the econ- 
omy and the creation of a 
base for sustained economic 
growth Is the fundamental 
challenge facing Ghana’s new 
military-led regime, Fit Lt 
Jerry- Rawlings, chairman of 
the Provisional Defence 
Council (PNDC), has an- 
nounced. 

_ In his first major Press 
conference since the New 
Year’s Eve coup which over- 
threw the civilian govern- 
ment of Dr Hilla Ltinann, 
Fit Lt Rawlings sought to re- 
assure both Ghanaians and 
the international community 
about the intentions of his 
new administration. While he 
repeated a warning that in- 
dividual foreign Investment 
agreements would be - re- 
viewed, he stressed that “ our 
foreign obligations and re- 
sponsibilities still remain." 

Fit Lt Rawlings stopped 
short of spelling out a speci- 
fic economic programme, bnt 
announced that a “compre- 
hensive review " of the dom- 
estic economy was being 
carried out, “ to initiate plans 
for the elimination of cor- 
ruption and inefficiency, and 
to build the basis of a sound 
and sustained economy." 


Alain Cass, in Bombay, examines a major threat to official trade utiions 

Indian textile workers sweat out deadlock 


net oil 


f ap talk. 


The change of government 
has brought day-to-day ad- 
ministration almost to a stand- 
still, although business has 
revived In the market, with a 
significant reduction in the 
astronomical black market 
prices being charged. Some 
goods, such as rice and sugar, 
are already disappearing, how- 
ever, either because , they have 
sold ont at- the lower prices, 
or . because traders have 
started hoarding them. 

While Fit Lt Rawlings has 
declared a “holy war" on 
corruption* and fe also com- 
mitted to the abolition of the 
blackmarket trading system, 
he told the Press conference: 
"We are not claiming that 
corruption is the fundamental 
problem of the economy.” 
Ministers, however, were to be 
selected from “people who 
are competent, committed, and 
of spotless integrity." 

On foreign . investment. 
Fit Lt Rawlings said that 
although- all existing agree- 
ments had been signed in 
terms of a strict investment 
code, “individual agreements' 
will need to be looked into, if 
they turn out to be inimical 
to our interests.” 


THE GOOD DOCTOR smiled 
self-deprecatingly, wiggled his 
head in that peculiar Indian 
manner and said: “Violence 
doesn’t solve anything. The 
charges against me are all 
proo3ganda.” 

His henchmen grinned 
npprovinsly. while Dr D^ta 
S’manL self-apuoiuted protector 
of the underorivileced. scour?" 
of bosses >n the industrial 
heartland of India, sat back, 
satisfied. 

Outside his Bombay head- 
quarters. a sauat mud-brick 
building in , one of the city's 
seamier industrial suburbs, 
small knots of workers milled 
around expectantly. TJip 
Samant pennant a factory and 
a clenched fist, hung listlessly 
in the heat from a makeshift 
pole. 

The city beyond was like a 
ghost town compared with its 
normal, exuberant self. Vir- 
tually every shop, factory, 
school and office was shut. Riot 
police natrolled main roads and 
silent factories. 

By this morning, most estab- 
lishments will be open again. 
The general strike, called by 
official unions opposed to Mrs 
Indira Gandhi, the Prime 
Minister, will be over. But the 
textile factories will remain 
shut. These are likelv to 
remain in the erin of a biecer 
di smile for weeks, possibly 
months. 

The strike, over a 50 ner cent 
wnpe demand, affects 6? mills 
employing more than 250,000 
workers, which account for 
more than 30 per cent of India’s 
textile production. It is a 
major trial of strength between 
Dr Samant and the employers, 
representing the latest move in 
his climb to national promi- 
nence as the country's most 
successful and feared unofficial 
union leader. 

It is also a challenge to 


Mixed response to strike call 


about 10 others of conspiracy, 
instigating a riot, and causing 
an illegal strike hanging orer 
him. This does not seen: to 
cause him worry. “If they 


fin Giis^tt 


^ 

. J kal Of , 

y* Wa-kf;-,; s 


PRIME MINISTER - Indira 
Gandhi appeared to have 
emerged victorious in her first 
major confrontation with the 
opposition-led trade unions 
yesterday when a call for a 
countryside general strike hy 
six major labour organisations 
went largely unheeded, except 
In the Marxist-ruled states of 
West Bengal and Tripura, 
K. K. Sbarraa writes from New 
Delhi. 

Mrs Gandhi had taken the 


call for the strike as a 
personal challenge and had 
ordered the entire official 
apparatus in the country to 
ensure that it did not succeed. 
Her efforts were largely suc- 
cessful but at the cost of the 
arrest of more than 8,000 
labour leaders before the 
strike. 

In New Delhi most Govern- 
ment offices and public 
services operated normally, 
although police and para- 


military, forces patrolled the 
streets. Some- arrests were 
reported. No indications of 
support for the strike from 
other cities were available ’ 
because national news agencies 
did join the strike. 

The strike was called in 
protest against the powers 
assumed by the Government 
for preventive detention and 
for banning strikes' in essen- 
tial services. 


ariqpt me, it won’t get th= wor- 1 

anri 


kers back to work," he slid, 

The man the India* Press 
now' calls - a-? phenomenon is a 




_ _ CV 51 v,::, 

creation of India's po^ical sysv | " 
tcm. Indian unions are effe^ * 
lively., the labour -’aid. 


PflvsJh;-. 


of tfaqfr/:^ a p, 
bes. cLdi-'- -iz*™ .... ’■ 


respective "political firties, dili-'- - lv r , 

. ... - - •- «n.-n be ar 


vering votes at elerkm timeiin 

— 4 — d - 41 * 

J Jan 


"<*k- 


•India’s long established official 
trade unions and to she political 
parties which they support un- 
swervingly. The strike has also 
raised fears of widespread 
violence and intimidation, a 
fairly new phenomenon on the 
Indian labour scene. 

In a recent letter to the state 
government of Maharashtra, 
Bombay’s major employers 
claimed that the “deterioration 
in law and order riow borders 
on diaos.” They said violence 
and intimidation, including 
murder, was now part of the 
industrial scene, and detailed, 
several hundred cases of 
assault, accusing Dr Samant 
either directly or indirectly of 
fomenting violence. The em- 
ployers want toucher action, 
including a special vigilante 
Force, tike the one operating in 
nearby Gujarat state, to protect 
workers and premises. 

The strike also comes at a 
bad time for India's textile in- 
dustry— the country'!; biggest 
foreign exchange earner. Stocks 
arc high, due to depressed 
demand, profits are low. while 
costs have risen steeply, 

“We’re passing through a 


major crisis,” said one tnSL 
owner, “ and while we may be 


call He claims to have inter- 
vened successfully on behalf of 


glad to thin out our stocks in more than 1.5m workers in 6 0 m 
the short run. without produc- factories. “I get results 


ing. a long strike could cripple 

us.” 

Bombay’s entire textile work- 
force. disgruntled with the 
Indian National Trade Union 
Congress, the major union 
which supports Mrs Gandhi Is 
Congress (I) Party, has detected 
to Dr Samant 

Dr Samant Is a most improb- 
able firebrand. He is a chubby, 
soft spoken general practitioner 
Ln his late 40s. He began his 


immediate 


economic . gain. 
That’s why the workers come,” 
he says. 

Dr Sam ant’s targets have in- 
cluded the Premier Automobile 


return for politicalpatronagt . 

The situation irKaharashtra • i **' !. 

is complicated bemuse Mr A. N. . ** A ' r 
Antulay, the -Qfef Minister'-. ^ . 

there, Mr^Gapdi’s represents- ' 

tive in the sta*. was recently :■ Cj**' r. J' ? 

fired in.the wke of a major. 
cement scand-v His successor; v 

is due -to be apointed later thin - . 
week. One parse open to him t , 
will be to.^ciare the. textilB i* 31 
strife illega'ron the basis .that £. f ? r .W’" 

Dr Samant' union has not foK > 

lowed the’ ftabKshed procedure ' 42“*? oil . *'? 7 r 
or being Jted for .in -factory Ulanrt '’ :i ' 

hallnfc the J' 1 ’Oln 


h 0-£ 


ctuded the Premier Automobile ballots, hprison the leadezs, nr 

Company, which manufactures and hopehe strife fibres oiiL 1 
Flat cars, Siemens, the Godrei L v 


the Godrej 

empire, as weU as a number of 
smaller and mare vulnerable 
enterprises. 


ant2- K 


Were tatfo fe^ien, jt -wtolff £ 

be * ma?.r blow to Dr Simants u? lio 
undoubid’ Potitical atobltfcms. ->-■ ^ ' n 

Somp nservers hAliunn.' tw .sw ^ir. 


The Siemens strike' lasted , ^ 


eight months, the 

page three. His latest target. -the p k 




career as a trade union’ activist^ Indian Express Group ofl&w*. 


in the early 1960s. when he took 
up the cause of quarry workers. 

“ They were paid 3 rupees 
fI7p) a day. The employers 
locked them out. the police 
charged the demonstration .we 
held, I was badly hurt and so 
were a lot of others. The action 
lasted 40 days, but- 10,000 
workers had their pay doubled.” 

That was in 1967. In the years 
that followed, < hundreds of 
thousands of workers, disap- 
pointed with ti»e results 
obtained by India's handful of 
national unions, flocked to his 


papers, have refused to talk to 
Him. declared a lockout and 
P»ven their employers -three- 
months’ protective notice; which 
expires on February J 5 r 
At the end of tbe battfe with 
Premier, the grateful wrork force 
gave Dr Samant a car m appro- 

-.datum of their Huge pay rises,. 

. has. by his .own admission, . 
been prosecuted for-' murder 
three times, arrested about' 5& 
times, and once jailed for a 
Jear -. Each time he •• was 
acquitted. Dr Samant currently 
has ope murder charge 


'-SOUTH 

let i 


oh, 


tbai bis lack of a . 
amsational base Hill 

town rf Mrs GafidM : Vi?*l SQ ^invf,i v: . 
decMs tf throw her full^ -we^it. ! 


I are not so sure, 
who was knifed -and 
tiy \ paralysed while 



That 1 


Wishful - .t hinlpf igr 

plenty of mscontent 
rfcersHere. The oalf • f 


feal with Samant is to 

iat discontent. Some 
are doing it, but j 
re noc&> jfil gooiL.".^ 




Egypt and Israel ready to sign Sinai agreeirteit 


BY ANTHONY McOStMOTT IN CAIRO 


EGYPT and Israel were yester- 


day set to sign an agreement 
which,, barring a few details. 


would open the way to Israel's 
final and smooth withdrawal 
from Smai. which it captured in 
the 1967 Arab-Israeli war. 

Two days of talks largely 
between Mr Ariel Sharon, 
Israel's Defence Minister and 
Mr Kauai Hassan Ali, Egypt's 
Foreign Minister, were con- 
ducted. according to Mr Sharon, 
in a “ wonderful atmosphere,” 


•■We really feel. Mr Sharon 
said, “that we are at peace.” 
Israel is due to. complete its 
withdrawal on April 25. 

Agreement was reached on 
Monday that ..the islands of 
Tiran and 'Sihafir at the en- 
trance to the Gulf of Aqaba 
should be under the control of 
the .Egyptian .civilian police 
after withdrawal, as the terms 
of the Camp David accords 
require. As these islands were 
leased in 1954 from Saudi 



Arabia, Tsrae] has been asking 
that they should be put under 
supervision of the multinational 
peace-keeping force which Is to 
patrol the last area of Sinai. 

It was also agreed yesterday 
that the Israelis in the trouble- 
some settlement of Yamit in 
north Smai might be permitted 
to return after the withdrawal 
date to remove remaining equip- 
ment Bnt, according to officials 
attending the talks. - further 
negotiations are seeded to 


determine the future =stafes of- 
the small tourist resort of Taba. 
near Eilat on the Gulf of Aqaba 
and whether the town 
which, -straddles the border 
between . Egypt and - th^'Gaxa 
Strip . should be- rBplitr-br 
absorbed into the. Strip; r. : ’ v. 

David Lennon adds from Tel 
Aviv - -Israel . yesterday denied 
Syrian, claims that m&sties' had 
-been fired - at •Isradi^.-fightera 
£yinf over Lebanon!; Syria W» 
it fired Sam-6 ■■ anti-aircraft 


-mi Js: trolling 

• Jetsitrt taifeed. - , - - , 

. _ If 'mJktary spokesman '.in 
•TeliWsald that lsradi 
crafhs? carried out -a routine - ^ 5 C 
asahee.. . flight --gwer-riv* ■ 
“but thartiie 
^ reported 6 
Jfefe . fired: at 

maw -repoff^:itiised 

ygnitTAW^ J . j jK-j.- 11 





in-.:; 

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Wednesday January 20 1982 


WORLD TRADE NEWS 


Seiko ill Hong Kong deal I Uranium Call to cut Australian tariffs 


C 9 T WCHARO C WN^ M TOKrO 


ir 

T, 


general -m< 
into Europe 
cial vehicle; 
assodate'itt 

At thp-G 

later this-\*e ... 

t*e a sm& TLD/a 
A2 r to-- 5Ji toirn 
.weight 

GM says the 
in- the.'tJnbduct 
ford, life :®ta 
vehicle- subsi 
CF van has a 
of 3 J> t onne; 
ford TK/TL tSi 
tonnes. 


fs to hrini? 
c commer- 
Jaozo,' its 


SjlOW' 
display 
otf 


fcgap 
of Bed- - 
commercial 
; 'Bedford’s 
mm weight 
Me the Bed- 
star^ at 5.7 


GM, whiCtf-haS owned 34 ner 
j OT. I$6zul for;^3fo-- years;" 
intends; for th«r tiniei' being to 
sell . the TL D a nly in- Switzer- 
land, a non-EEC cajmtry: with 
no restrictions- "on Jap anese 
vehicle imports^,. . .... ! 

The group uses -an Isuzu- 
pick-up, the KB, t& fill another 
gap in- tfa& - Bedford : product 
range in the .UK -and other 
parts of Europe. JBdt the .voicin' 
tary restrictions ^agreed between *, 
- the British and Japanese mri ns. 
tries in-1975 prevent any^dirtct 
import of Japanese;, commer-, 
a!als of more than - SJr-toniics 
to Britain. Ti _ 

A Bedford official said .yester- 
day: “ Even without the volun- 
tas restraint system we would . 
not want to bring in the tt j^-at ; 
any time.” • 


H3E SEIKO group, the' world’s 
ttgest -anaker of watcbes, is to 
establish what appears to' bC 
the first joint venture in Hong 
Kong involving both foreign 
mid Chinese mainland capital. 

The /new " company, owned 
equally by .the. Japanese group 
and the. China National T ^g -hr 
Industrial Products Import and 
Export Go^poraftioo in. Peking, 
mayServe m '» model £br-'a£her 
foreign'-, companies 'planning to 
invest 1 in ' Hong Kong . as the 
scheduled 1997 . deadline for 
reversion , to zoaonhtnd control 
draws near. .; ' ; - 
; The joint venture with Seiko 
will produce watch cases and 
aseei nbl«\ • watches using 
mechanisms supplied ' from 
ja^pan.- - . Production, with 
capacity of' about lm units a 
year, is expected to begin in 
ApriL '- 


The idea for such a- venture 
originated- on lie Chinese side, 
which .through a • Hong- Kong- 
based subsidiary of the China 
National Light Industrial Hua 
Yuan company, has operated a 
small watch case production 
factory for some time. ' 

.Three members of the Seiko 
group, which already operates 
two watch assembly plants in 
Hong Kong, along with a 
Japanese trading company, 
agreed to co-operate with the 
Chinese by taking a 50 per cent 
share in a newly capitalised 
venture, r aising the capital in- 
vestment to HK$2m (£181,000). 

For Seiko the new company 
will serve primarily as a sub- 
contractor for the two plants 
already owned by the Daini 
Seifeosba and Suwa Seikosha 
members of its group, KL 
Hatton and Company of Tokyo, 


which serves as co-ordinator and 
sales outlet for the group, and 
the Taiyo Koeki Company, are 
the other two Japanese partners. 

K. Hattori said the new ven- 
ture’s output would be marketed 
worldwide as part of its overall 
sales. There are no special 
plans to ship the watches, which 
will have mechanical move- 
ments at first, to China. 

Seiko wps clearly motivated. 
to accept China’s proposal in 
Hong Kong ont of concern for 
what will happen to foreign 
investment after the expiry of 
the New Territories lease in 
1997. But the idea of a joint : 
venture' also has the more 
immediate advantage of allow- 
ing a joint foreign-Chinese 
Government capital venture to 
skirt the problems which stiB 
block the formation of a joint 
venture in C hin a itself. 


Egypt to receive Y46bn loan package 


by akihony McDermott in cajro 


THE JAPANESE ' Govern- 
ment yesterday agreed to 
extend -a yen loan package ' 
worth Y4fibn (£10Sm) to - 
Egypt for the current 
Japanese fiscal year. This 
respresents a 23 per cent 
increase of loan commitments 
to Egypt over the previous 
year. 

- Mr Michio . Watauabe, 
.japan's Finance Minister, is 
visiting Egypt as part of a 
"tour of the Middle East 
The loan brings the total 
of economic assistance 


granted to Egypt by Japan 
since 1973 to fil.lbn (£591m). 
After the U-S. and West Ger- 
many, - Japan is the third 
largest aid donor to Egypt. 

The terms of gie aid are as 
before, namely 3.5- per cent 
interest with repayment over 
30 years, including a 10-year 
grace period. 

The loan will be used to 
finance seven projects. Of 
these the most significant is 
the $49m allocated for the 
partial financing of the second 


phase of the widening and 
deepening of the Suez Canal. 
If bad been anticipated that 
Japan would extend 5250m 
worth of soft Joans towards 
the cost of the project, 
estimated at $7 50m. 

There have been doubts 
expressed even by Mr Hasb- 
honr Ahmed Mashhonr, the 
head of the Suez Canal 
Authority, whether Egypt 
would go ahead with this until 
new studies had been com- 
pleted. 


agreement 
with Japan 

By Our Canberra Correspondent 

JAPAN AND Australia have 
initialled the text for a Nuclear 
Safeguards Agreement paving 
the way for exports of Austra- 
lian uranium to Japan. 

.The agreement, which still 
has to be formally ratified by 
both sides, was drawn up after 
more than two years work by 
the negotiating teams. Exports 
of Australian uranium' to Japan 
under new contracts could begin 
in March. 

Australia currently supplies 
Japan with' small amounts of 
uranium under contracts signed 
before Australia's nuclear safe- 
guards policy came into force 
in 1977. 

Japan’s reluctance to agree to 
Australia's nuclear t safeguards 
threatened to hold up shipments 
of uranium from the new 
Ranger mine in the Northern 
Territory. 

The mine operator. Energy 
Resources of Australia, which 
is partly owned by Peko and Ez, 
has contracted to supply Japan 
with 13,413 tonnes of uranium 
between March this year and 
1996. 

The text of the proposed 
agreement was not released, but 
it is understood that Australia 
did not depart from the general 
terms used in the previous nine 
accords signed with 16 count- 
ries, including the UK, and 
Euratom. 

These require Australian per- 
mission for resale and repro- 
cessing. 


BY PATRICIA NEWBY M CANBERRA 


FIVE MAJOR mining companies 
have -lent their support To' anti- 
protection forces In Australia 
■with a call for a substantial 
reduction in tariffs and other 
forms of assistance to inefficient 
manufacturing industry. 

In a submission to the 
Government’s advisory body on 
tariffs, the Industries Assistance 
Commission . (IAC),. the group 
which accounts for 10 per cent 
of Australia’s total annual 
export income, has called for 
the dismantling of government 
assistance to industry, except 
for- a standard tariff of 15. per 
cent and S^nerous depreciation 
allowances to enable business 
to write off for taxation pur- 
poses the cost of new capital 
equipment 

The IAC is holding public 
hearings on options' for general 
reductions in protection. The 
LAC is also inquiring- into ways 
of making more efficient and 


effective .non-tariff forms of 
assistance to industry, such as 
export incentives and taxation 
benefits. 

This week's submission from 
the group of mining companies ' 
comprising CRA, HIM, Renison 
Goldfields Consolidated, Cliffs 
Western Australian Mining and 
the Western Mining Corpora- 
tion. called for. the phasing out 
over 10 to 15 years of existing 
forms of assistance. These in- 
clude restrictive quotas on 
imports, export incentives, 
research and ' development 
grants, investment allowances 
and a range of bounties and 
subsidies. 

The submission also called for 
a free exchange rate and the 
elimin ation of exchange con- 
trols. 

The group says protection of. 
Australian industry has been a 
failure.. In the last decade 
Australia's level of economic 


growth and trade fell in com- 
parison with, other countries, 
and employment fell in the 
most heavily protected indus- 
tries. Money saved from the 
abolition of government assist- 
ance to industry could offset 
loss of tax revenue from an 
accelerated deprecation allow- 
ance, the group says. 

The strong anti-protection 
-case from this influential group, 
led. by one of Australia's most 
respected businessmen. Sir 
Roderick Carnegie,- chairman of 
CRA, is a shot in the arm for 
the anti-protection lobby. 

The Government’s post-1984 
plan for protection of the motor 
vehicle industry, announced a 
month ago, although no sur- 
prise. was nevertheless a dis- 
appointment to free traders,- 

maintaining high tariff barriers 
and the system of restrictive 
quotas on imports. 


Canada in N-pact with Cairo 


BY OUR CAIRO CORRESPONDENT 


EGYPT and Canada have signed 
an agreement worth C$12m 
(£5.4m) to enable co-operation 
in the fields of energy, in. par- 
ticular nuclear energy. 

Under the agreement, which 
takes the form of a grant, ' 
C$4m will be available for train- 
ing workers at nuclear power 
stations. 

The use of nuclear power is 
central to Egypt’s long-term 
energy strategy, and by the 
end of the century it p lans to 


draw more than half its energy 
from eight nuclear plants- So 
far the intentions are for orders 
of two plants from each of the 
U.S., France, and West 
Germany. 

An official statement said of 
the Canadian- agreement that 
nuclear cooperation included 
“the purchase by Egypt of 
Cana dian reactors, technology, 
uranium, heavy water and ser- 
vices to operate transferred 
nuclear equipment.” But officials 


in Cairo were describing the. 
agreement as one of “prmciple." 

In addition, C$5m is to be 
spent on new solar and wind 
energy projects, and C$3m with- 
in the agreement in energy 
feasibility stu&es. 

Renter reports from Ottawa: 
Canada’s anti-nuclear lobby has 
condemned the agreement clear- 
ing the way for Egypt to buy 
nuclear reactors, fuel and tech- 
nology from Canada. 


Babcock Power in £36m 
Zimbabwe boiler contract 


BY OUR WORLD TRADE STAFF 


BABCOCK POWER, part of the 
Babcock -International group, 
has received-sri tetter of intent 
for the sale and installation of 
two coal -fired 'steam, genera ting 
units costing: -06m from ' the 
Electricity Supply- Commission 
of Zimbabwe.- J - ' ' 

The commission/^ which needs 
the units for the- expansion - of 
the Wanlde power-station, has 
taken an 18 months;- option on- 
the purchase of one or two fur- . 
ther units, depending-on future 
needs. - ; v --*- T ~ V 

The equipment will be manu- 
factured at Babcock’S-Rex&ew 
plant which as. already handling 
boiler contracts Tor the much 
larger Castle Peak- power!- de- ■ 
velopment in, Hong -Kong. '• 

Babcock wpa the order after, 
fending off .competition from-, 
Stein Industrie. a-Ftebcb;'cam- . 
panc^:.the.£tethpm g^otg^ and , 
Skoda of Chechoslovakia. 


M exi co and 
Soviet oil 


Finance, for the equipment is 
being provided through a buyer 
credit from Lazard Brothers, the 
■London banker?. The 1 credit is 
backed by the Export - Credits 
Guarantee Department - ' ■ 

• GEC Mechanical. Handling is 

to undertake the engineering. ; 
and contract management for a 
plant expansion at the Auckland 
works of New Zealand Steel in 
a £2m contract 7 placed through 
GEC (New Zealand): This 

^arrangement, is part of a de- 
velopment-being engineered by 
Davy McKee (Minerals and 
Metals), part of the Davy group. 

• Vickers Instruments of York , 
h^ received .an order for £1.3m 
of. laser/ rangefinders for 
Nigeria. ' Delivery starts in 
1983, The rangefinders Will be 
used on tanks being manufac- 
tured by Vickers.- Defence 
Systems. 


EEC curb 
oil Russian 


swap talks watches 


By William Chislett in 
. Mexico 'City _ 

THE VISIT to Mexico this 

week of Mr Vladimir Morozov, 
the - bead of - the Soviet 
Petroleum Marketing Agency. 
; has heightened speculation 
that Mexico and the Soviet 
5 Union ate renewing efforts to 
establish an oil swap deal 
•' invo l vi ng the two countries, 
-:6aha and possibly Spain. 

: . v Hr Morozov is talking- with 
-officials at Prates, the state 
- oil concern. When he arrived 
; over the weekend, he con- 
: firmed he would touch on a 
swap; arrangement In his 
'tiUfafc,:. - - - • 

’ After the swap deal, which 
h as te en mooted for a long 
lime, hut has so far come to 
' Dotting, Mexico would supply 
oil to Moscow’s client, Cuba, 
and 'Russia would supply 
Spain. 

The deal would be advan- 
tageous for Moscow, which 
must pay high transport costs 
for shipping oil to Cuba. The 
Caribbean island is- only a 
day by ship from Mexico. . 

Bmt the arrangement would 
"hat ' be advantageous for 
! Xtfico, since the country sells 
its' off “free on board." 
.Commercially, it makes no 
difference ~to Mexico- where its 
nil goes, since' it does not -pay 
the transport bilL 

A swap deal involving CsSoa 
would also incur the wrath of 
Washington, although now 
that Mexico fe the. world's 
fourth .largest oil producer 
the Government is less, con- 
cerned about how its powerful 
neighbour might react. 

Mexico and Cuba enjoy 
good relations, and Sr Jorge 
IHaz Serrano, the former head 
of Pemex is now MexiM’S 
ambassad or to .the Soviet 
Union. 


By Cnles Merritt In Bnasels 
RUSSIAN - WRIST-WATCHES 
are the target of tough anti- 
dumping measures by the Euro- 
pean Commission, with provi- 
sional duties of up to 23.fi per 
cent now being put on mechani- 
, cal.watclies and movements pro- 
duced in the Soviet Union. 

Annual sales of Russian 
watches in the EEC total an 
estimated $58m (£31m). 

' British, and more particu- 
larly the Timex Corporation of , 
Dundee, is the main beneficiary 
of the move' to stem surging 
Soviet, exports of the watches. 
Timex is the leading producer 
in the EEC of mechanical i 
watches, and has come under j 
serious pressure from Soviet; 
exports which have been sold 
with a dumping margin of up ! 
to 43 per cent , j 

The Commission's decision to ! 
impose provisional duties fol- 
lows a complex anti-dumping 
investigation launched in mid- 
1980. Because Timex is the 
predominant producer of such 
watches in the Community, the 
probe extended as;far as Hong 
Kong in order to establish a 
fair basis for assessing normal 
value that would in turn allow 
dumping margins to be calcu- 
lated. - * 

The investigation established 
that gold-plated watches coated 
to a of five microns 

of gold were being dumped at 
an average margin -of 95 per 
c ffp tf- , while others coated with 
10 microns had a margin of 23.fi 
percent. The provisional duties 
imposed on the Soviet . watches 
have .been set at those leye)$ . 

The material injury ..that tfie 
Soviet Union's - ' dumping of 
watches is alleged to have 
caused Timex was a 13 per cent 
drop In its output of mechanical 
watches between 1978 and 1980. 


HilR 


company ventures 


Y PAUL LENFDVAl IN VIENNA 


HUNGARIAN Government 
state-owned companies are 
:t> mote the establishment « 

ventures in tte.countiy- v 
spite a Government decree 
years ago allowing- the. 
ig-up of such' com pani es,' 
port released by 'MTh- .tbe 
ai news agenc^-Jndicates- 
ipointment that 'tmly- see 
ly owned companies have 
set up so far m- Haiigary. . 
satiations /are under way 
oonri four .‘further . joint; 
ires. They include * 
ry farm, operated o» the . 


basis of \ joint ownership by 
Austrian ; and West German 
partners; a rice production pro- 
involving what MTI tails 
“a large American food trading 
company"; the joint manufac- 
turing of hair tonics with a 
French' company and the 
launching of an Arab restaurant 
in Budapest 

The Hungarians' have pub- 
Hshed a Businessmen’s Guide 
for Foreign Investors in several 
foreign languages to inform 
them of business opportunities. 


Before a pilot is cleared to fly a new 
type of aircraft on routine passenger flights, 
he must undergo an exhaustive training 
course. 

He must become so familiar with the 
controls and flight characteristics of the 
aeroplane that he could almost fly it in his 
sleep. And meet any emergency with the 
calm and confidence that is born of com- 
plete familiarity. 

The cost of a single training flight, in 
terms of scarce resources, would appal 
a conservationist. As would the increased 
congestion and pollution in the vicinity of 
our already overcrowded airports. 

A 747 uses over 3,000 gallons of fuel 
an hour at normal cruising speed. Thaffc 
more than an average British motorist 
consumes in ten years of normal driving. 

Fortunately for that motorist, 
Rediffiision has developed a generation of 


flight simulators so sophisticated that a 
pilot may learn to fly new aeroplanes 
without so much as leaving the ground. 

Simulation, then, is one of the more 
dramatically rewarding applications of 
Rediffiision technology. 

But we also enj oy a glow of corporate 
pride when a ship’s captain employs a 
Rediffiision navigation system to pinpoint 
his position with an accuracy thatis almost 
uncanny. 

Or the efficiency of a business is 
enhanced at a stroke by the installation of 
a Rediffiision computer. 

Or, indeed, whenever we feel we have 
made a real contribution to the safety, com- 
fort or convenience of people anywhere. 


REDIFFUSION 


THIS MAN HAS JUST FLOWN 

A BOEING 747 TO NEW YORK 
WITHOUT USING 
A DROP OF FUEL 




ig v > i 

■ 

: y ''W'Txr W, i 4s* ■ 
: -A) ? 


: •* 












7^: 




.d 


IF YOU WOULD L!K£T0 KNOW MORE ABOUT US WRITE FOR A BRQCHURETQ: GROUP PUBLIC RELATIONS EXEXXJTW^ REDIFFU510N UQ, CARLTON HOUSE, LOWER REGENT 51, LONDON SVWY 4LR 


I 


I 















6 


Financial Times Wednesday January 2 % 19S2 


UK NEWS 



cuts 


in Tornado production 


BY MICHAEL DONNE,. AEROSPACE CORRESPONDENT* 

PRODUCTION TARGETS Of lie On the original production 
£fdo-West Geman-Italian Tor- plans this would have risen to 
nado multi-role comb si aircraft, about 142 -aircraft a year, cost- 
are to he cut by a third in the ing at least JEUhn- By keeping 


UK and West Germany in the 
next three years to save money. 

Mr John Nott, Defence Sec- 
retary, is expected to make a 
statement tomorrow after Jons 
talks among the three countries 
involved. 

The out will be achieved by 
keeping to the current produc- 
tion rates of 42 aircraft a year 
in West Germany and 44 in the 
UK, for the period 1982-84, 
instead of allowing them to rise 
as planned to 59 a year in 
Germany and 63 a year in the 
UK. Italian production will 
remain unchanged at 20 aircraft 
a year. 

Considerable short - term 
savings are likely. With a basic 
strike Tornado costing £12m 
and the advanced " air defence 
variant ” costing about £14.5m. 
the current annual production 
cost of just over 100 aircraft a 
year is running at more than 
£1.2bn. 


the production rate .to -present 
levels a saving, of .about £500m 
a year is possible. 

In the long- term, however, 
the overall programme cost of ‘defence version). 324 for the 


overspending has grown so 
much that Tornado- must bear 
some share . of the retrench- 
ment. ■ 

There is -no plan to cut the 
overall total of 809 aircraft, of 
which- 385 will he for the RAF 
(including 165 of the air 


more-' than. £10tm for the - full 
number of 809 Tornado aircraft 
planned is likely to rise; 
because the production will he. 
stretched Into 1989-90 . instead - 
of ending around 1988-89. 

The slower production rate is 
intended to last only to the end 
of 1984. What will happen then 
will depend on how 1 the two 
main countries involved can 
control defence spending. 

The problem has arisen 
because of overspending on 
defence budgets in the UK and 
West Germany, forcing re- 
appraisals of defence pro- 
grammes. 

Until how efforts have been 
made to spare the Tornado, 
which is regarded as a vital 
contribution to Nato, bat the 


German Luftwaffe and Navy, 
and 100 for the Italian air 
force. 

About SO aircraft have been 
delivered from the assembly 
lanes in the three countries. 

The cut- is not expected to 
cause any redundancies at the 
British Aerospace military air- 
craft division at Wart on .in 
Lancashire, but redundancies 
may occur among some of the 
700 companies in the UK, West 
Germany and Italy involved on 
the programme, especially 
where the prime contractors on 
the airframe and RB-199 engines 
have drav/n back sub-contract 
work. 

About 70.000 workers in the 
three countries are employed 
on Tornado. 


More BP 
refineries 
in Europe 
to close 

By Ray Dafter, Energy Editor 

BRITISH Petroleum plans 
further oil refinery closures 
in Western Europe, shed- 
ding 15 per cent of its original 
capacity there, or some 1 15m 
tonnes a year.. 

Thfs second phase of Its 
rationalisation programme _ 
follows closures announced 
in the past year amounting 
to almost one-quarter of its 
refinery capacity in Europe,, 
including the UK. 

The moves are designed to 
bring the group's overall 
refinery operations into 
better balance with expected 
demand. Overall, the com- 
pany intends to cut its 100m- 
tonnes-a-year capacity by a 
total of 40m tonnes. 

The second wave of 
closures is expected to 
involve relatively small 
plants, jointly owned with 
other oil companies. It is 
understood that BP will con- 
centrate on those refineries 
with limited scope for up- 
grading heavy products into 
high-value, light products 
such as petrol and naphtha. 

Earlier this month it an- 
nounced plans to close its 
4.4m-tonnes-a-year refinery at 
Dunkirk, France. This took 
the capacity of announced 
closures to almost 23m tonnes 
a year. 

Six refineries have so far 
borne the brant of the 
measures: Dunkirk; Isle of 
Grain in the UK (10.4m 
tonnes); Antwerp, Belgium 
(Um tonnes); Vohbuxg- 
Eriag, West Germany (2.4m 
tonnes); Dinslaken, West 
Germany (2.6m tonnes); and 
Speyer,' West Germany (1.8m 
tonnes). 


Up to 1,300 ICI jobs 
may go at Welwyn 

BY 5U£ CAMERON, CHEMICALS CORRESPONDENT 


IMPERIAL Chemical Industries' 
petrochemicals and plastics divi- 
sion is preparing to axe an 
es tima ted 1,300 jdbs at its Wel- 
wyn Garden City resarch and 
administrative centre in Hert- 


services together with produc- 
tion plants. 

Welwyn was the headquarters 
of the plastics division before 
the merger and ICI is a big 
employer there, although no pro- 


fordshire, as part of a eontinu-, d action takes place on the site. 


lag cost-cutting 'programme. \ 

Many of the offices on the 
60-acre sate are expected to be 
sold. 

Last night IO was unable to 
confirm or deny that job losses 
xt Welwyn would total 1.300 — a 
' figure estimated fey Mr John 
France, prospective Labour par- 
liamentary candidate for the 
area. But the company said a 
number of operations there 
were to be (moved to other sites, 
affecting “hundreds of jobs" 
although it did not yet know the 
exact number. 

ICL which employs L800 
people at Welwyn, stressed that 
it would offer voluntary sever- 
ance -wherever possible and/or' 
some the option of being re- 
located. 

The departments most likely 
to be affected will include 
research, technical services, pur- 
chasing. supply and distribution. 
But Welwyn will continue to be 
the petrochemicals and plastics 
division’s business centre and 
the dirisional board will be 
sited there. 

icrs petrochemicals and 
plastics operations were merged 
only last spring, since when the . 
group has been able to save 
£35m. It is estimated that this 
latest phase, of the division's 
rationalisation programme will 
cut costs by at least £2m to 
£3m a yeaic - 

The company says the move is 
aimed at cumulating duplication 
in ceriain services and improv- 
ing its service to customers, for 
example by siting its technical 


Much of Id’s petrochemicals 
and plastics output comes from 
Wilton on Teesside. 

. The plastics and petrochemi- 
cals operations lost £79m in 1980 
and the merged division con- 
tinued to make substantial 
losses last year. TCT foresees a 
marked upturn in business this 
year -continuing into the early 
part of 19S4. 

But the company forecasts 
another major slump in petro- 
chemicals and plastics in 19S4- 
1985. It is therefore determined 
to streamline its business and 
get maximum profits from the 
few good years it sees ahead. 

Staff at lyelwyn were told of 
the further rationalisation plans 
last week. The programme Is 
expected to be completed by the 
end of next year. 

© A £95m ammonia plant, using 
technology developed in Britain, 
will be built by an ICI sub- 
sidiary in Ontario. Canada. The 
announcement of the project 
marks another stage in the 
group’s policy of expanding 
sales overseas and reducing 
dependence oa the UK. 

The 373,000 tonnes a year 
plant will be built by CIL 
(Canadian Industries Limited) 
in which ICI has a 73.4 per cent 
interest. It will be sited at 
Courtright in Ontario, where 
CIL already has an ammonia 
plant It will use Canadian 
natural gas as its raw material. 
Ammonia from the plant will 
be used in making nitrogenous 
fertiliser for local use. 


Friedman 
blames 3m 
jobless on 
‘obstruction’ 


. By David Marsh 

PROFESSOR Milton fried- 
man. the economist who 
: inspired Mrs Thatcher’s 
monetarist strategy. . Jus 
•Sained the. near-3m un- 
employment total on in- 
adequate implementation of 
Ids policies, . 

In an interview -In this 
week’s West Ge rman maga- 
zine Der Spiegel the Nobel 
Prizewinner scores Tory. 
Party grandees and official 
bureaucrats for obstructing 
Mrs Thatcher’s plans. - 
In this interview,' con- 
ducted in California, he 
assailed. British people for 
refusing' the medicine * he 
prescribed — lower public 
spending, tax cots and sale of 
state industries. 

“ If Mrs Thatcher had taken 
the medicine from the begin- 
ning, there wouldn’t have 
been 3m unemployed.” 

The 'unemployment prob- 
lem was difficult but had 
existed before she came to 
power. The size of the 
“underground” labour mar- 
ket meant official figures 
exaggerated the true jobless 
rate. 

Professor Friedman- said 
the only part of - her pro- 
gramme followed had been 
commitment to monetary 
growth. This Is suiprisog, 
because the Government has 
constantly overshot its money 
supply targets. 

This commitment had led 
to “very positive effects” in 
the “ very strnog ” fall of the 
inflation rate. This, however, 
was rising again because of 
the depreciation of the pound. 

The monetary cure for 
inflation led inevitably to‘ tem- 
porary cuts in growth and to 
more unemployment. This 
period, lasting 18 mo nths to 
two years, was now nearly 
over and the worst of the 
recession was over. 

He was a “great admirer” 
of Mrs Thatcher, who was 
east in the same mould as 
President Reagan. The differ- 
ence between UJ5. and UK 
economic policies was that 
the people and the Republican 
Party stood fuly behind the 
President. 



Nissan verdict on British Datsnn 
plant not expected nntil 

AT KENNETH GOODING, MOTOR INDUSTRY COR8ESPONWIT 

BRITISH motor componEUi There seems no ‘reason why 
makeis do not expect Nissan of fee latter problem should not 
Japan to make, an announce- be sorted out quickly. Plants 
ment about’ whether it wHl jgo with one industrial relations 
ahead with a Datsun car plant bargaining point axe not un- 
to. the UK until March — nine ’ common is the UK 
rnonths .after the original target There is some evidence feat 
date. : . " the Department of Indust fary, 

tfjssan has worked hard and negotiating on behalf of fee UK 


So f» nejfeeryfes ah.; Bo rttfe 
Department " Of Industry 
given any' indication abvuVhpw 
this local content woifld , be 
measured. Tins matter. o&vwnSy 


spent a. considerable sum on 
feasibility studies, hut it is still 
by .no means certain feat fee 
group will set up the proposed 
£300 m plant on a greenfield site. 

But Mr Taiasfci Isfiibara, 
president, said in Japan yester- 
day feat the company had com- 
pleted the studies and “I see 
no "special obstacles to our 
advance (into Britain).” 

According ; to UK industry 
sources, though, two important 
issues stiD have to be resolved 
when Nissan sends its team to 
Britain next month for a final 
round of negotiations wife fee 
UK Government and fee unions. 

• The level of local component 
content is fee cars to he pro- 
duced — “ local ” in this context 
maaningr from within the EEC. 

• Whether a satisfactory deal 
can be worked out wife the 
unions for just 0De negotiating 
body at the plant. 


Government, has been taking a 
firm line about the local con- 
tent issue after being told force- 
fully by the UK component 
groups that if Nissan is allowed 
to bring in too many compo- 
nents and sub-assemblies from 
Japan it would result in a net 
loss of jobs in Britain and 
/-mild seriously undermine fee 
domestic components industry. 

The - Department has con- 
sistently ' made it clear that, 
while the UK welcomes' inward 
investment from- overseas com- 
panies. feat welcome extends 
only to projects which will 
benefit fee British economy., 

Nissan said when it started 
the feasibility studies in 
January last year that the cars 
the British plant would produce 
would have a 60 per cent local 
content initially. This would 
rise to 80 per cent “ as soon as 
possible.” 


recent discussions' 
department 

Nissan ortgSnaHy hoped to 
make an renouncement' about 
tfce.UK project last summ er an d 
' get car production undra^way— 
given a positive ' fledsHfer-^n 
1984. 

Now no UK-HUde.DatsQn cats 
could be on fee market, before 
mid 1985 because. fee group. has 
said it will take about 3| ^eaxs 
between 1 the decision^ to:' .go 
ahead and start-tip.' 

. ‘ This is welcome newrfofi-BL 
in. particular which will have 
time to get its- LC1Q. rtnge of 
medium-sized cars Wetilannched 
first, in 1983 and 1984. 

NIssanJs plant is expecte d to 
produce cars with engines 
between L5 and 2 litres,, com- 
peting head-on wife fee BL 
LC ID -models as well as Ford’s 
Cortina replacement, the Sierra, 
which is due this autumn. 

If it were built fee . Nissan 
plant would eventually produce 
200,-000 cars a year. 


BL -s Rover 2000 back on market 


BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT 


BL GIVES . the executive car 
market a shot tin fee arm today 
by bringing back a Rover 2000. 

The last one in the old style 
went out of production in 1975. 
Now fee 2000 returns as part 
of the SD1 Rover saloon range 
which has been relaunched after 
“fee most extensive range of 
refinements and improvements ” 
since the models were intro- 
duced six years ago. 

' 3ut BL has not lowered fee 
initial cost of Rover ownership. 
The 2000's list price is £7,450 — 
exactly the same as the Rover 
2 A cost st the beginning of this 
year. There was a mid-January 
price rise for the rest of the 
Rover range, the first Increase 
since last August, obviously 
designed to provide, headroom 
for the new modeL 

BL sold 21.500 Rover saloons 
in Britain last year and believes 


fee changes will boost this -to 
25,000 or more this year. The 
2000 is expected to account for 
about one in every four. 

The introduction of the 2000 
should also increase Rover's 


popular demand^’ fee top ferae 
models have real walnut veneer 
on the interior trim. 

The service interval has been 
extended to 12,000 miles or 12 
months and there are brake pad 


sales on the Continent by about sensors on the front braking 
25 per cent from last year’s . system which trigger off a warn- 


6,000, which BL said was a little 
more than forecast. 

BL is using its fmnvcyclinder, 
1994 cc overhead camshaft “O ” 
series engine in the new 2000. 
It says fee mndrf has a top 
speed of 104 raph. The official 
fuel consumption figures are 
42.6 mpg at a constant 56 mph 
and 32.7 mpg at 75 mph. 

The group estimates between 
£5m and £7m was spent on re- 
vamping fee Rover range. Tim 
model sow has a new instrument 
binnacle, modified suspension 
and redesigned electrical system 
among other changes.. And 41 by 


ing light when the useful life of 
the pads is over. 

. TheRoversaxe now made at 
Cowley.' Oxford, and BL says it 
saves an annual £8m try switch- 
ing from the Solihull plant 
Prices are the 2300 £7,970; fee 
2300S £9,358; the. 26C0S 

£10,177; fee S500SE JE12£4& and 
the Vanden Has £14J87, 

BL says a diesel-engined 
Rover will be available “ before 
the end of 1982.” For fee first 
year or s o the car w 21 use a 
diesel made by VM, an Dalian 
subsidiary of the State-owned 
HU group. 


‘Choose Gill or me. Grade told ACC hoard’ 


BY RAYMOND HUGHES, LAW. COURTS CORRESPONDENT 


How to talk business in Germany . 


The German economy is 
kept on its toes thanks to a 
whole series of activities and 
campaigns in which experienced 
managers take part to just as 
great an extent as young, 
up-and-coming executives, 
and entrepreneurs just as much 
as their colleagues all the way 
up the hierarchical ladder. 

Catering for the needs of 
this differentiated market 
Gruner+Jahr offers its clients 
two equally sharply differen- 
tiated magazines, each appeal- 
ing to a specific business 
target group. 

Capitals the most influen- 
tial German business magazine 
— and Europe's largest every 
month. Capital equips its 
readers wrth information of 
lasting value on such subjects 
as: What economic policies are 
m the air. Howto evaluate 
stock exchange trends. Where 
and how to invest your money 
the most cannily. How mana- . 
gers make their way to the top. 


"The business magazine 
impulse is specifically geared 
to cover the needs of the many 
medium-sized businesses that 
are responsible for the lion's 
share of the German gross 
national product impulse offers 
entrepreneurs concrete know- 
how on the running of their 
businesses: Information on mar- 
ket opportunities and new pro- 
ducts and technologies, advice 
on legal, tax and financing 
questions, tips on computer per- 
sonnel and patent registration. 

Capital and impulse see to 
it that your advertising on the 
German market gets really 
close to vital target groups. 

If you.want to talk business 
with the Germans, you just 
can't afford to ignore these two 
magazines^ 

Further information from 
Sylvia Gnenef, Gruner-F Jahr 
International Marketing 8c Media 
Services ttd„ 7 Cavendish 
Square, London W7M 9 HA, 
TeL: 580 86 72, Telex 29 88 77. 



Communication hi Germany 


Gnmeri- JahrAG &Co, Druck- und Vferiagsftans, Ptvsifaife30 2040,20)0 HambntR 36, West Germany 


MR JACK GILL, former deputy 
chairman of Associated Com- 
munications Corporation, was 
given only an hour’s notice by 
Lord Grade of his intention to 
try to get Mr Gill off fee 
company's board, the High 
Court heard yesterday. 

“He told me he and I could 
not work together and he 
wanted me removed. I was 
shocked and very angry" said 
Mr Gill in evidence read to the 
court. 

Details of Lord Grade’s 
sudden move against Mr Gill, 
who had been his right-hand 
man at ACC. were disclosed 
for the first time in Mr Gill’s 
evidence, 

Mr G31 sought an injunction 
stepping Lord Grade and four 
olher ACC directors transferring 
feeir voting shares to Hr Robert 
H dines a Court, who last week 
replaced Lord Grade as head of 
the entertainments " con- 


glomerate. 

Mr GUI also asked fee court 
to order Mr Holmes a Court not 
to register any voting shares 
transferred to Mm. 

Only if such orders were 
made would Mr Gill still have 
the protection of the directors* 
undertaking to vote in favour of 
the proposed record £560,000 
compensation payment to Mr 
Gffl. his counsel. Mr 'William 
Goodhart QC, told fee court. 

But Mr Justice Wbitford re- 
fused to grant fee injunctions. 
Instead he acepted undertakings 
by Lord Grade, Mr Holmes k 
Court and the other directors 
feat fee vital shares would be 
voted only to adjourn ah extra- 
ordinary meeting of ACC, called 
to approve the payment 

Those undertakings will re- 
main in force until .seven days 
after the court has finally rated 
on a petition by which fee Post 
Office Superannuation Fund and 


Holmes a Court ‘will not 
frustrate bids for ACC’ 


10 other pension funds and in- 
surance companies wife money 
invested in ACC are seeking to 
block fee payment 

That petition win next be be- 
fore fee court on February 15, 
but is not expected to be fully 
dealt wife until some time after 
feat. . 

'Hie effect of yesterday’s court 
decision is feat Lord Grade, Mr 
Louis Benjamin, Mr Norman 
Coffins, Mr L. S. Michael ■ and 
Sir Leo FHa-tsky can transfer 
their shares to Mr Holmes k 
Court. 

Mr Goodhart said feat on 
Angst 25 last year, when Mr 
Holmes k Court was *‘a cloud 
no bigger than 9 man’s hand on 
the south era horizon." Lord 
Grade called an emergency 
board meeting for the follow- 
ing day. 

Mr Gill stated .la bis evidence 
feat Lord Grade had promised 
to tell him an hour before fee 
meeting what was happening. 

He did so,, and then gave the 
hoard an ultimatum: M Choose 


betwtwti Jack GH1 and roe." . . , 

By five to three fee board 
voted to strip Mr GiM.<tf.hds exe- 
cutive powere. • 

Mr GUI's evidence was' feat 
several board . members had 
pleaded- wife Mm to resi g n , for 
his own and fee company’s sake. 

He had refused,. but eventu- 
ally agreed to go in return, for 
an agreement which, included 
fee compensation payment. 

Mr Goodhart said feat If fee 
pensions funds’ petition suc- 
ceeded, fee compensation agree- 
ment might be frustrated. 

There -was nothing - Mr Gill 
could do about that, but he was 
entitled to fee court’s protection 
as far as fee transfer of the 
voting shares was concerned. 

Mr John Wilmers, QC. for all 
fee defendants, said that apart 
from Lord Grade, all the direc- 
tors had agreed to sell feeir 
shares to Mr Holmes 5 Court 
on condition feat they were 
given proxies to vote at the 
extraordinary meeting. 



groups 


ByCoy de.jonqutews; ... 
BRITAIN 


overseas 
-musics. ' 

off tfy pr n 
: l0Bfcerbfe 
from fee 


fee bk» t popular 
for Uj>. -elec- 
ts, feoflfih many 
,evel it would no 
teif.ft«ifedrew 
according to a 
r f 

published by 
tiori Fite, found 
U JS. companies 
set op operations 
e Britain as feeir 
rWest Germany 
- ' followed by 
da, Mexico and. 


; vT&e-' s 
Electronics 
feat-. .1 
pfcanafeg % o 
abroad. S3:g, 
first .choice, 
came 
Iceland, 

p~_ 

But .43 the companies 
fayoarfeg' Britan said it would 
"he ather tta&ritoble 0r less suit- 
;«6le;it4t left fee' EEC. . ... 

• . Eiedhronics Location File, 17 
'The, Green, Richmond, Stares 
TW9-VPX,:. . 

Howell defends pfcm 

for heavier lorries 
MR DAVID HOWELL, Trans- 
port Secretary, . yesterday 
replied growing criticism of 
fee Governments proposals to 
allow 40 tonne lorries bn 
Britain's roads by saying the 
phots, were good for the en- 
vironment. 

■ He : told a meeting in Ids 
Guildford constituency, fee 


Government's proposals offered 
M mu rift . ftia best tihaace for ■ 
getting safer. _ quieter tozries bn 
fee roads air well as sdkmdng 
operators of feeayy_torxy. jfleets : 
to use' fewer vehicles.” - 

Insurance claims 
‘doable the average 9 

THE SUN AiHJance Group, the 
largest domestic property in- 
surer in the UK is ' handling 
about 2^006 claims every work- 
ing . day?— twice ■ the r normal . 
average for ■ this time of fee . 
year— because of bad weather.' 

: The vast majority of claims : 
for . damage caused by floods, 
mow and burst pipes, are for 
less than £100 but the company \ 
is . receiving .some claims for 
over £10,000. 

Private group takes 
oyer ; ..street, cleaning 

THE Conservative - controlled 
London borough of Wandsworth 
yesterday became fee -first in 
die first tin fee capital to hand 
over its street ctoMdng services 
to. private enterprise. - 
•From Jdset end of fee month 
fVftehard Industrial Services 
will take, over fw^ the council’s 
own department, at an' estimated 
saving of almost £1-5 m. 

Spencer sale offer 

EARL .SPENCER confirmed 
yesterday -that he was' negoti- 
ating .the sale of two rare late 
17th century , gold wine coolers, 
estimated to. be worth more 
than £600.000 to the British 
Museum. 

Bank chief retires 

MR ALEXANDER MacmiH/i. 
director and chief executive of • 
the Clydesdale Bank, is to retire 
at the end of June, the - bank 
said yesterday. 

Mr Richard Cole-Haroilton, 
46. at present gvieral manager. ' 
will become deputy . chief 
general manager on February 1. 

S ponso rship move 

BRITISH Nuclear Fuels, the ' 
nuclear fuel manufacturing and., 
services company, is to provide - 
sponsorship for archaeologists 
at Manchester University who - 
are excavating what eould be 
one of. England's earliest 
village sites al . Tatton Park 
near Knutsford, Cheshire. 


BY JOHN MOORE 

3IF ROBERT HOLMES a 
COURT, the new chairman of 
Associated Communications 
Corporation, said yesterday ho 
and other directors would 
du nothin? to frustrate bona 
fide takeover bids from other 
companies. 

The 44-year-old Australian 
entrepreneur took over the 
chairmanship of Lord Grade’s 
entertainments group last week 
and bid £36 m for it. 

■ He told his first Press confer- 
ence .as chairman and chief 
executive of ACC that anybody 
else who widbed to make a bid 
for the company would not be 
denied information relating to 
the company’s affairs. 

He made his remarks as both 
Mr Gerald Rnnson. of Heron 
Corporation, and Mr Robert 
Maxwell, of BPC. requested 
further information which 
miqht lead to them bidding to 
gain control of more than 60 
per cent of ACC voting shares 
whife seem set lo pass to Mr 
Holmes 5 Court’s control. 

He said yesterday his business 
interests would not sell feeir 
shares. u There is no price that 
is likely to be offered that 1 
would accept.” 

Hr Holmes k Court, looking 
relaxed and chajn-smokin^ Ions 
thin dears, said the payment of 
£560.000 to Mr Jack GUI, the 
• group's former managing direc- 
tor, “ seems excessive." He said 
he was to be an unpaid chair- 
man and chief executive of ACC. 
taking only £5,000 in fee usual 
director’s fees. 

There were no plans to sell 
subsidiaries to repay the banks 
and allow ACC lo shrink or sell 
parts of the business to pay for 
fee bid. 

But he warned feat the group 
had net debt of £51 m, which 
was rising.' 

On the question of future dis- 


posals within ACC, he said 
ihere was an offer for fee 
Classic Cinema chain, which 
Lord Grade acquired from Mr 
Laurie Marsh. ‘‘I do not know 
whether it will eo through, but’ 
I expect it will." 

All negotiations oa fee music 
company had “come to 
nothing.” He had not seen an 
offer from Mr Paul McCartney, 
fee former Beatle. who was said 
to have expressed Interest in 
fee Northern Songs catalogue. 

On fee future of Central 
Independent Television, in 
which ACC holds a 51 *>er cent 
interest, Mr Holmes a Court 
said fee voting shareholding 
was to be held in trust prob- 
ably an institutional trust, for 
as long as there was a non- 
resident controlling interest 
entitled to these votes. 

A new wave of austerity 
would hit ACC, he said. “When 
all the information is disclosed 
in fun. in our offer document 
for ACC, you will find feat I - 
am not a party lo any Jade Gill- 
type payoff. No director has 
bettered his position by either 
resigning or selling his shares 
to me." 

Mr Holmes k Court said Lord 
Grade, who will be a fuD-lime 
executive ami deputy chairman 
of fee group's film division, 
“has not improved his position" 
in fee changeover of fee 
management: of the company. 

It was revealed yesterday 
that one of ACC's bankers, the 
Midland, had a covenant with 
ACC which said Joans — beBevc# 
to be about £3m— were repay, 
able on fee control of fee com- 
pany 'changing ownership. After 
a meeting of the treasurer of 
ACC and fee treasurer of fee 
Bell group, Mr Holmes k Court's 
master company which is 
making the bid, assurances 
were given and the Midland 
waived Its condition. 



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Fmaiidal Tizoes Wediies^.^aj^iaiy 


UK NEWS 


Short Brothers 


Firth Brown 
warns unions 
250 jobs 
are to go 


Grant anomalies frustrate county leaders 


BY ftoe&l PAULEY 


BY OUR BELFAST COBRESPOMDENT 


' SfiOKT' BROTHERS, the State- 
. Owned aerospace company, yes- 
terday announced s. 10 per cent 
cut' writs labour force which 
- wiil mean 650 redundancies ait 
' -fits (three Belfast factories. 

■ " . Sir Philip' Foreman, the man- 
. aging . director, said job losses 
bad .bean delayed as long as 
--/possible by the introduction of 
short-rfene working in tfae fcope- 
that demand, particularly in the 
would Shew signs bf 

approving. 

. - -But sales of toe company’s 
comimit eratreraft, the 330, were 
::fitill affected by the gmieral 
. recession in toe U.S. airline 

- industry. Custom era were seek- 
: ing-to prut back delivery dates, 

he said. 

The cuts wriJi include 400 
production workers and 250 sup- 
port workers' and staff. They 
wirQ be spread across ail divi- 
sions of itfh'e company, including 
missile production, but aircraft 
. and component manufacture 
• vriftl cany toe brunt. 

These reductions ore ta'addi-. 

- tUm to toe 300 redundancies 
and ' early retirements' among 
Shorts staff announced last ■ 
October. ‘ 

Stir Philip said deMveriPs of 
major aerostfucture components 
to US. customers and of engine 
pods for Rolls Boyce RB211 
series engines had been 
u severely cut back ” because of 
the fall in sales of the larger 


jot aircraft. .. 

He said toe company suffered 
“ a body blow in December 
when Lockheed cancelled the I 
TriStar programme for which j 
Shorts 1 made all the engine 
parts and a -wide range of 
other components. 

Sir P hili p said longterm, 
prospects were very promising; 
with £275m-worth of orders to 
be delivered. He believed when 
the effects of the recession 
diminished . export volumes 
would regain ' the levels which 
the company had achieved in 
the last decade. 

He said the company was 
also optimistic about prospects 
for its new 360 commuter air- 
craft, a 36nseater derivative of 
the '330. - The Government 
agreed in" December to in- 
crease Shorts’ External borrow- 
ing limit so 'that the 360 could 
go into volume production. 

Short Brothers reported a 
pre-tax loss of £8 .9m in the 
year to August 31 1980. The 
deficit for the succeeding 12 
months is expected to be sub- 
stantially higher.' 

The ' company's .future and 
that of the Hacrland and Wolff 
shipyard, where further redun- 
dancies are expected, will be 
discussed next month at a meet- 
ing between officials of the Con- 
federation of Shipbuilding and 
Engineering Unions and Mr' 
James Prior, the Northern 
Ireland Secretary.- 


By Nick Garnett; Northern 
.Correspondent 

jljlTH BROWN, one of th e 
country’s biggest private 
steelmakers, has told shop 
stewards that -it wants an 
Immediate reduction of 250 m 
Its workforce of 3,200. 

It is also seeking a 17 per 
cent redaction in employment 
costs which it wants to nego- 
tiate with union representa- 
tives within the next few 
weeks. 

Shop stewards at the 
Sheffield company, pvt of 
Johnson and Firth Brown, 
are due to meet today to 
ratify recommendations which 
will be pot to a meeting of 
the workforce on Sunday. 
This follows a meeting of a 
group of senior stewards 
yesterday to discuss how they 
should react to the company’s 
position. 

The meeting on Sunday will 
Include members of unions in 
'the Confederation of Ship- 
building ' and Engineering 
Unions as well as the Iron and 
Steel Trades Confederation. 

Mr Arflmr Hogg, the com- 
pany’s managing director, 
told shop stewards Firth 
Brown needed to reduce costs 
significantly and Improve 
productivity In line with 
international competition. 

The company, wWeh 
declined to go into details 
shout what it h$d fold union 
representatives, has outlined 
its trading position to shop 
stewards. 

Firth Brown, which I?st 


THE Environment Department 
has been embarrassed to dis- 
cover that it is penalising metro- 
politan counties for overspend- 
ing when the counties are 
actually carrying out Home 
Office spending decisions. 

In the current year, for 
example, the 'six Labour-con- 
trolled metropolitan counties ' 
are' deemed to be overspending 

on police by £30m and qs a 
consequence they are suffering 
progressive grant redactions on 
that expenditure. 

Yet -the Home Office has 
approved the total spending, it 
controls the manpower and 
establishment levels and it also 
controls all expenditure on 
vehicles. 


Only a very smaH proportion 
of police expenditure is outside 
the control of the. Home Office, 
which pays a. specific grant ci 
50 per cent on, police items. 

Leaders of the counties-— 
Merseyside, West Yorkshire. 
South. Yorkshire, -Greater Man- 
chester, Tyne and Wear and 
West Mdiands— put the cook 
plaints to Mr Michael Hes el- 
tine, Environment Secretary, 
who saftTfce had hot been aware 
of tiie technical outcome of that 
part of 4be grant formula, nor 
of the contradiction between 
the Environment Department 
and the Home Office. 

It was too I ate to make any 
alterations for 1982-83, with the 


result that veiy large cuts are 
being demanded, from the 
metropolitan counties, where 
the proportion of total budgets 
taken, up by poHce spending 
varies from 27 per cent to 40 
per cent. 

Three authorities — -Gr eater 
Manchester, South Yorkshire 
and T?ne and Wear— have 
been asked for 7 per cart 
current expenditure cuts com- 
pared with this year’s: revised 

budgets. 


Merseyside needs a 13.7 per 
cent cut, West Yorkshire 17-9 
per cent and West Midlands 
22.6 per cent to avoid stringent 
penalties through grant' loss. 

If these cats are to be made 


outside .police expenditure it 
will require major -redactions 
is the other mam metropolitan 
county services: fire, transport 
and highways. 

Tte - factor is: not Ihe 

only - anomaly to - appear : this 
: year.' There are serious efistor- 
tions in the allQcatioB .of grant, 
for concessionary tos’/ f %reS 
schemes for. old age 'pensioners 
throughout the country--- 
; The money has been iJSstri? 
t»ted to aH- atcthoriti^'Cai & : 
population-related basis* winch 
.inflated . the Govensnertt’s 
asaessment of Jtow.rnsKffirSome 
councils need to spend to pro- 
vide a standard tevei of ' ser- 
vices, and deflated others. - • 

. Devon's - assessment, -■ y for 


example, is £Sm .^’becmite of 
concessionary fares money hut 
-it 'spends Yery .Httierin this 
field. - Greater Manchester, on 
hand, '^ste only one* 
third of what K spendst 
--1: Treasurers ai^.-.dotinciJ 
leaders alike are he connng in- 
jrrearihgly^ frustrated at what 

■' they - regard ms . the 1 discre- 
pancies in ro -many of the 62 
factm used - to calculate grant 
, Last year serious defects in 
' som? ' of ' the education ..ixnd 
houang factors appeared.: This 
.year an attempt has been made 
to rectify .both so.. tire -new 
Mdcnjatten.bn ; nursery educa- 
; trim, -for . example, bears more 
relation: to toe actual service 
" j^v&q^^ MCh area*. . 


L ,!■ ^ 4.- - : ' •' ; ■ ' ~ ' 



Fluid- bedbofler deal i ^ 
in U.S. for Babcock U, 


. BT OAV1D RS«0(% . SOEN|CE HMTOR 


year cot Its workforce bf 
1100. ban been seriously 


Job equality action sought 


BY USA WOOD 


to ensure women can compete 
in the workplace on an equal 
basis with men were urged yes- 
terday by Baroness Lockwood, 
chairperson of the Equal 
Opportunities Commission. 

She said such action had 
often been misconstrued as 
favouritism towards one sex at 
the expense of the other. It was 
not favouritism, die told the 
Newcastle and district branch of 
the Institute of Personnel 
Management. 

*Tt is, rather, a pragmatic 
response to the fact that simply 
prohibiting discrimination Is not 
enough tb ensure that women 
may compete on an equal basis 
with men.” 


— Section -47-o£-toe~ Sex JMst-i 
crimination Act allowed dis- 
crimination in favour of women i 
for training purposes, Sbe said i 
the West Midlands Engineering 
Employers’ Association was the i 
first organisation to seek desig- 1 
nation as a training body under | 
the Act, to provide special train- 
ing for women with manage- 
ment potential, 18 months ago. 

Now there were 14 such 
bodies training women in non- 
traditional fields 
• It was essential for both sexes 
that alternative career patterns 
be adopted, to allow more fieri- i 
bility in their careers and more ! 
choice in . how they comiMned j 
work and domestic response | 
b'rlities. ' 1 


1.100, has been seriously 
affected bv the depressed 
state of demand tor steel. 

Its principal products are 
■©■pen-die special steel forcings 
destined tor general engineer- 
Ins and relatively high tech- 

jrolwy uses. It . also makes 

• enrineerine products. 

It has been bit more than 
most private steel makers by 
fluctuations In demand for 
steel from the aerosuace 
iuriustrv. for which It Is a 
prime snootier. 

Shoo stewards said yester- 
day Hie comoauv had given 
no firm indication of what 
further reductions ft would 
seek if the 17 ner cent cost 
sflrimcs were not agreed. It 
had . not. snecffieally warned 
of any farther redundancies. 

There has been some 
speculation though that a 
Failure to reach agreement 
friily promptly could result 
In more Job losses. 


any Kirk 

THE TOLLING of the Billingsgate bell at 5.30 am yesterday morning opened trading at 
London's new Bfftingsgate fish market on the site of a disused warehouse in the West India. 
Docks. The hell was one of the few things brought from the old market in Lower Thames 
Street in the City of London 1 to the sew film purpose-built building. - 


Agency workers oppose tax proposals 


by james McDonald' 


INLAND REVENUE proposals 
which “ treat agency workers as 
guilty of tax evasion until 
proven innocent" were attacked 
yesterday by a group of organi- 
sations and companies which 
represent them. 

Thy Revenue plans ti> tax 
agency workers operating as 
limited companies by deducting 
30 per cent of their toes at 
source as an immediate pre- 
payment of Corporation Tax. 

Replying to the Inland 
Revenue's consultative paper 
Taxation of Agency Workers 
operating through companies, 
published last November," the 


group accuses it of staling the 
growth of small consultancy 
companies. 

Speaking at a London press 
conference Mr Walter Gold- 
smith director general of the 
Institute of Directors- said: 
"Every one of us believes that 
tax evason in the agency worker 
sector, and in every other 
sector.- should be stamped out 

“But we cannot fail to have 
serious reservations about an 
approach by the Inland Revenue 
which seems to regard all 
agency workers firms as inher- 
ently guilty of tax evasion until 
they prove otherwise.” 


The group of 12 organisations 
and companies wants the 
Revenue to adopt an alterna- 
tive system to cut tax evasion. 

This would involve an agency 
notifying the Revenue of its 
timited company status, and 
PAYE, Corporation Tax and 
sub-contractor’s tax details; de- 
ducting at source 30 per cent of 
fees in cases of serious tax 
arrears, with the amount with- 
held being recoverable by 
deduction from PAYE and Cor- 
poration Tax.- payments; and 
submitting to the -Revenue 
returns on amounts paid,, tax 
deducted and tax refunded. 


BABCOCK BOWER, a pioneer 
of ffaikgsed-bed . ttmtoustiop.- ta- 
Britain, .has turned to the U.S., 
for a new generation .of. tech- 
nology. 

In London yesterday Babcock 
signed a licence agreement with 
Stone and' Webster," a Boston 
engineering group "fior its paten- 
ted s scon d-generati on .fluid-fced " 
boiler. UnBce present fluid-toed 
systems, it can be cuntrofed 
over a wide range of outputs, 
down to one- quarter of full 
power. .. i\ 

■Mr Ron Campbell, managing 
director of Batococfc Power,, said 
tins . toadrfoHowing fe&ture 
greatly enhanced its attractions : 
as a. reEd-fired replacement for 
oil or gasHfired industrial* 
fmffecs and process steam plant 

. Babcock has negotiated a " 
worid exoosive licence except; 
for the U^., Canada and 
Venexuela. where its licence is ' 

non-exclusive, and for Japan. 

. where no licence agreement has 
yet been signed. 

Last month Stone -and 1 Web- 
ster signed •' a non-exclusive 
licence agreement with Foster 
Wheeler for -the UiL, Canada 
and Venezuela. 

Mr Campbell said yesterday , 
he .saw the U.S. as a major' 
potential market for Bahcock. 
and has access to the results of 
demonstration projects mounted 
there by Stone and. Webster. .. .. 

The technology is said to cope " 
with coal with a -sulphur, con- 
tent of mote than. 3 .per cent 
which costs less than a quarter 
of the priee of oil in the UB. " 
Jon: an equivalent heat-raising 


-feds. - This & because ~ of the 


expense, of meetings air pollu- 


: Tfe ^Said-bed boUerrusesIhne- 
stone to keep the sulphur from 
entering the atmosphere. At its 
heart' is a control system r 
-invented by Mr Ben Johnson, a 
UB.. oonaiJtaat and developed 
by- Stone, andr Weteter te the 
past two years. - ' V . ; ” 

-The bed of hot alumina beads- 
need to burn the coal is fluidised 
' by air- jets nnd .dmilatea- by . 
jete of higher velrarity-so. tiiat 
' hot -particles . of . coal, -cascade 
. over a wkter-coolea wall. TFp to 
. 50 per cent of the energy of the ; 
fed can be extracted this vray. 

' -, The tranafeir nf heat lo the'' 
-water can then be controlled as 
easily as-toeding fuel to nn 7 'ofi- . 
.fired bofler, simply toy regulat- . 
ing fhe flow, of cimriating' coal 
particles. ■ . ’r ' \ 

Mr .Warren Leland, Wnior ’ 
vice-president of - jStone j. and 
Webster, said Gonoco. the newly 
acquired siAsldraiy. of Du Port, ., 
le'f unding a “lmt test unit'’— a' 
pilot plant designed to raid | 
about 5,000 lb of steam an faonri - 

In-, addition, .. Conoco has" 

. ordered a 50,000 fi> per hour 
demonstration plant to raise 
process steam from- petroleum 
coke, scheduled -for. completion 
by 1983-84 at a cost of $15m 
(£7.94m). - - 

But Mr ZAlahd expects toe 
bqilcr system; to be sold at 
between .. $lQrn . and ' 
depending on size, in toe range 
of 50.000 to 450,000 Jib of steam 
an. hour.. -, r . .. 



Manchester candidates list tests Labour 

Nick Garnett examines the party’s $$ 

leet on Friday to be given secretary. 

SHhVdi subdued local election run-up. . Z M 


NEWTOWN 



OF FACTORIES 



youaDigcooicec 

lot Harare besides. 


Lam^shire can offer 

factories andwaiehaases. Anda 


Q Tbe units range from ijOOOsqfc to 100,000sqft. 
CD There aie 3 pleasantly designed emjfoyment 
areas, all dose to motorways^the M6, the M61 and 
theM55. 

CD 'IiaveOiiig times. By Metric inter- 
236 hours, Glasgow: 2% hours. By road: Manchester 
anA 

Aiq 

60 e 

□ < 

of St 


THE EXECUTIVE of the 
Labour Party in Manchester 
will meet on Friday to be given 
a breakdown on the adoption of 
party candidates for the’ city 
council elections in May in 
which all 99 seats are being 
contested. 

The verdict of that meeting 
as likely to be that the truce 
which brought some form of 
peace to the warring factions 
in the local party and the 
council’s Labour group is 
holding. 

About 78 Labour candidates 
have been chosen -in the wards 
and all the decisions have been 
taken on who will stand for the 
critical seats the local party 
believes are winnable. 

The council has been. under 
Labour control for all but a 
few years since tbe war and 
is currency made up of 67 
Labour councillors, 23 Conser- 
vatives. five Social Democrats 
and four Liberals. 

But as with the Labour Party 
at national level, no one knows 
if, or how long, the subdued 
atmosphere which has replaced 
the bitter factionalism — when 
the local party was pitched 
against leading Labour coun- 
cillors — will remrin. 

For one thing, the executive 
of the local party will meet on 
Sunday to decide what advice v 
it wiif give Labour councillors- 
On drawing up the city's budget 
—currently more - than £400m. 
That issue was one of toe prin- 
cipal causes of the divide in 
the party in the past two years. 

For another, no one is sure 


wbat the Labour group will 
look like when the new council 
is formed. Neither the left-led 
local Labour p art y nor the more 
moderate leaders of toe council 
group have badlt all their own 
way in choosing candidates. 

Referring to the first 60 
chosen in toe wards Mr Norman 
Morris, the .moderate Labour 
group leader, said the adoption 
of candidates appeared to be 
going ‘‘reasonably.” This 
seemed to refer to the moder- 
ates’ belief that. the number of 
candidates who might be expec- 
ted to faH under their -wing was 
larger than they once expected. 

On the other hand there are 
some estimates that tile new list 
of candidates breaks down 
roughly 45 per cent moderate, 
45 per cent left-owing and 10 
per cent floating somewhere in 
the middle. 

The final worrying: factor for 
the party, though, is that toe 
bitterness has -been, so intense 
that it could re-emerge at any 
time. 

The trauma suffered by local 
Labour politicians in Britain's 
fifth biggest city has five main 
characteristics which are rn 
some ways a reflection of pres- 
sures m the national party and 
other local Labour snaps. 

• The pressure of centre! gov- 
ernment cut in polarising' atti- 
tudes, Two years ago, 12 left- 


rm 


wingers were expeHed from the 
Labour . group for opposing 
spending cuts,, toctodtog those 
on council house repairs. They 
appealed succes&iUy . to the 
Labour Party’s National Execu- 
tive. 

By the time' they were rein- 
stated the council was in the 
middle of another financial 
crisis with the Labour.^group 
proposing cuts of between- £l2m 
and £20m~ which it said were 
necessary to keep the -council 
financially viable. 

The rebel group, now swollen 
to 17, again opposed .the expen- 
diture reductions. The -problem 
rumbled on into last year wheh 
the whip was again withdrawn 
from toe rebels. 

• The question of responsibility 
for decision taking, in the con- 
test of toe party's Left-Right 
bottle. Last year, the local 
Labour ■ party under the chair- 
manship of Mr Graham Stringer 
virtually demanded that pros- 
pective candidates for toe May 
election sign a' document com- 
mitting themselves to national 
conference decisions — includ- 
ing opposition to spending cuts. 

The panel of prospective can- 
didates agreed by the party last 
. year, from which the wards 
could choose, excluded 23 senior 
moderate council] ora among 
them Mr Ken Franklin, deputy 


-Secretary* ••...' : j; l -' r - i ■ 

"• Conetiaation by toe national . lr 'i 

Labour Rarty. Mr David 
Hughes, toe- party’s national 
agent, along with Mr Eric 
Heffer, chairman of Laboiff’s 
organisation commirttee, forged ■ 
a' truce id which the Labour 
group would reinstate tbejrebels JJ*! \ 
and toe local Labour party .i ^ - 
would acept the 23 cwmciUors ^ w. 
-on to toe candidates' panel w&h- ^ 
out precowSttionS. - : . «?: 

It is that agreement which is 

• holding at the moment. Mr ^ 
Stringer says . tie hopes the • 
executive on Sunday can agxw .lu 

a policy which Labour council- I 
lors as a group can support. ■! . J 

• The emergence, of the Sot&T'ih^ . 

Democratic Party. . Labour, poll- ilfUPfl 
tidaxts have .been scorning the : O^U 
chances of the SDP in the t 
coming elections in an area . ^ U_ 0 ’ 
where Labour traditionally . has '■[«. 
high support. But .'during a '*x. T ‘ 
period when the local Labour ^ 
party has -been incapable of • 

containing, its own rifts, .fiye of i V 
its members . on' the pqn 

have gone to the -SDP, At least ' =• :i 
one — Mr ;Fred . Balcombe, .. a », ? 

company director— ;had bton C 1 '^. 
out of sorts with the party for i- ~ 

some time, hewever. - • . •0,^; 

• The nature' of fhe Labour, j 
.group on the council. It is not 
full of backwoodsmen fallni5 
asleep ml the pews but' has ?- 
history of progressiv eness. As 

a result the- attacks-.~from.thc .£« 

Left have cut deep ■ and partly it . 
account for the levels of tetter-.- . 
ness and ' outrage. 




LoLiidryinetL 

□ WithinalOO mile radius 
are 19 imlliaii pec^e-morei 
dian die total populatioD S 
Sweden arwl * 


il vTnwl " * , 






Central Lancashire 

BRTmiN’S BJGG3EST NEW TOWN 







■iv v i- -*. ■ ■- “ - -- . Ar ; 


X 

% 


Jmua^ 20 1982 




UK NEWS - LABOUR 


u 




9 



*■ £ r' 1 - * ■*■ ■ 





-. -.'?.- r' 





« BRMM ^GROOrtr" IdlfiOUBrSninF 


workers 
accept pay offer 


£i* * 

X? f! 

' k 

:b> 


MEMB ERS of two of the three 
. unions representing; Ita local 
•' authority manual workers have 
l- voted. to accept employers’ 
"6-3 to ‘7JB per- cea^-pay . offer. 
-This vvrtoa^ en^res the offer 
will be acCeptedby.the union 
; side whenV^ tbe ortjonal . joint 
• ttwqeiLmei^ 

' ; . Such a =Wgb •'■ sfeStlement-— a 
. :. flat-rat© increaseTJof ££60 on 
basic . rties-' fcuvaJI seven grades 
' -'—4s an ’embarrassment- to the 
Government, which wants, to res- 
tract pnWjc service pay fnareases 
to 4 per ceraL -' ': 

The offer .a&n -cuts the work- 


*s 


mg week by one hour to 39 
hours from next November, - and 
gives five weeks holiday a year 
for those with more thaw five 
years* service. 

™ T h® General and Municipal 
Workers* Union's 300,000 mem- 
bers— the biggest group— voted 
£1 to accept the offer while the 
Transport. and General Workers' 
Umon voted, by 4-3 in favour. 

Between them the. two ™iniic 
have 21 seats on the national 
council. The resnlt of voting hy 
toe National Union of Public 
Employees, with- nine seats, 
should be known on -Friday. 

Mr Charles Bonnet, a GMWU 




seek 

rise 


BY IVO mWMAY, LABOUR STAFF 


LEADERS of Britain's 17,000 
ambula nce staff yesterday sut>- 
mrrted their animal pay ciaaan 
with a firm writing that they 
wfl] not discuss any deal aiming 
’ to hold wages to the Govern- 
ment’s 4 per cent cash limits. 

The ambulance staff seek a 
“ substantial ** rise in Kne with 
the. rate of inflation, a cut in 
the 40-hour working week and 
■ more annual leave. They are 
also calling for higher shaft pay- 
ments, to be "assessed as a per- 
centage of .the basic rate/ . 

, Lastyear they accepted a 7.5 
-per emit rise and an -extra day 
of. annual leave in a settlement 
covering 15 months. But agree- 
ment was ' reached -only after a 
24-hour national strike and 
several local stoppages in which 
some regions displayed a high 
level of militancy. . 

T$- inflation, continues at 12 ' 
per cent, the claim, would in- 
crease .bask pay for qualified 
ambutencemen outside London 


from £82.64 to £92.55, with 
average earnings of £142 ris- 
ing to About £160. 

' The cl aim is. broadly in line 
with those of other health ser- 
vice workers who are Ml 
scheduSed to settle on April 1. 

Last month imkm officials re- 
presenting/ 250,000 ancillary 
.workers also called for infla- 
tkmrlittked rises, unproved holi- 
days and a shorter week. And 
yesterday leaders of the 120.000 
clerical and administrative 
workers in the NES met to 
agree ■ a sizmlar claim. 

•. T!be . administrative and 
clerical staff are seeking a cash 
payment — as opposed to a per- 
centage rise — to be paid to all 
grades. At current inflation 
rates, it Would mean another 
£1435 a week. 

The .administrative workers 
are likeiy to demand a cut in 
working hours from 3637 a 
week -to 35, and minimum an- 
nual leave- increased form 20 to 
30 days a years. . 


Civil Service retirement 
rules to be changed 


by Christian met, labour editor 


nr 


•L> 

>' 


. / THE ^OVERNMKST has de- 
cedide to change a 30-year-old 
civil- service convention? that 
- staff - can normally expect: to . 
work ott-beyond tfie mtnimnm 
pensionable age of 60/ ■; 

Instructions have gone -out 
advising dep artmen ts - that 
this would be a suitable way 
of reducing staffs especially at 
a time of high unemployment, 
so xcKHKi could be made for 
young recruits. . 

The Civil Service unions 
.have been told of the decision 
“ without prejudice-” 

- This appears to mean that 
■■- they are invited to air their 
views hut that the redefinition 
' of the retirement roles would 
-proceed, anyway. 

7 / Jh theory 52,000 staff are 1 
:/ affected by the edict — about 
; v 10 per. cent of the civil 
..•servants. 

Different departments will 
:^make their own decisions. But . 


. - the first to go would be those 
; . who have Joined the service in 
mid-career, already have 
an octnpatienai pension ftom 
a previous employer, perhaps 
even an Index-linked pension 
from some other part of the 
public sector. 

Next in line could be those 
. who have already put in 40 
years* service and would, it is 
said, suffer- little loss by re- 
tiring at 60. 

The instructions are likeiy 
to get a mixed reception from 
the . unions. Those represent- 
ing lower grades claim the 
^pfan amounts to compulsory 
early retirement, an interpre- 
tation denied by the Govern- 
ment \ 

. Those who leave can sign 
' on to the dole : until they 
' reach 65 and qualify for the 
• State pension as well as their 
index-linked. . civil service 
pension. 


Mew youth jobs scheme 
urged for school-leavers 

- BT JOHN. LLOYD, LABOUR CORRESPONO©TT * 


. • A- ' GAEL ' for unemployed 
school-leavers to do community 
work as .part of a two year 
programme of training, prac - 
*TH^1 education and initiative 
' schemes has comes from the 
"Jobs in the Eighties” group. 

The group, an international 
research .'.body, privately 
financed, argues.- that there fs 
a “ basic mismatch ** between 
•‘an intolerably large and 
growing number of young un- 
employed people “ and u unmet 
community needs and- <a poten- 
tially critical shortage of 
"skills.” 

• A document, “Youth, unem- 
tdqyment: . the - appropriate 
• response," published yesterday, 
proposes a programme taking 
tn an estimated 700,000 young 
people between 16 and 19 -who 
are not in a job, or in further 
education. 

The main elements of the 
programme, which . would re- 
place one Manpower Services 
Commission's Youth Opportuni- 
ties Programme, are: 

•m a two-year introduction to 



mSfflNGTON, r>.c 
AJ^mosscmceoj 
Qradoosms 

Ala xo r y ho te l in the great 
Bn o p en i tradition. Bcgaa^<yne^ 

•nnmfiW nH^ aenagepfian. 



THE MADISON 

T ffnMtfftw V C umI -fi Mwu 

Tries 64245 
orsec year travel agent 

X*rb&lLC0ja£ t ?topaeiar 



- work, with on-the-job experience 
where possible 

# education in social skills, and 
encouragement to' develop 
initiative - 

• work on community projects, 
such as care of the elderly, the 
mentally and physically handi- 
capped and children. . 

The scheme would not be 
compulsory: But it would follow 
the example set by the Govern- 
ment in withholding payment of 
supplementary benefits from 
those who refuse to participate. 

The. group proposes that toe 
young people on the scheme 
. “ would not be part of the 
collective bargaining system." 
They would be paid by the MSC 
and would therefore “ be more 
attractive, as a commercial 
proposition, to employers than 
today’s apprentices/’ the group 
argues; 

It says that the cost of the 
two-year scheme would be 
around £lbn — only £200m more 
than the present cost -of keeping 
them unemployed. 

Sanctions call 
to insurance 
group workers 

By Brian Groom, Labour Staff 

THE Association of Scientific, 
Te chni cal and Managerial Staffs 
is preparing to impose sanctions 
at Trade Indemnity, the credit 
insurance company, following 
rejection of on offer to increase 
basic salaries by S per cent 

A series of sanctions win he 
put to a staff meeting next Wed- 
nesday if no better offer is forth- 
coming. Hie staff voted unani- 
mously to reject the offer 
yesterday- 

The union, which represents 
210 of the company's 3S0 staff, 
is pursuing a claim for 15 per 
cent rises, together with a 5 per 
cent productivity payment and 
improvements in conditions. 


national officer, said: “ The Gov- 
ernment can take little comfort 
from this settlement. Their 
public services pay policy of 4 
per cent has fallen at the first 
hurdle — even without recourse 
to industrial action. " . 

The local authority offer; how- 
ever. was made only on the cast- 
ing vote of the Labour chairman 
of the employers. Groups such 
as the health workers are ex- 
pecting a difficult negotiation. 

Mr Donne said hazard lights 
were flashing for next year. 
"The signs are that the low- 
paid manual workers are no 
longer willing to be the whip- 
ping boys for this Government's 
blundering economic policies.** 

This was echoed by Mr Mick 
Martin, public services national 
secretary of the TGWU, who 
said the large number of his 
members* votes against the 
offer showed an increasing mili- 
tancy. 

“Hie cycle of industrial 
action In local authorities, 
which in the past has taken 
place over 3-4 years as* the em- 
ployees" standard of living has 
been reduced, is now showing 
itself. I would anticipate that 
in spite of job losses and un- 
employment the end of 1982 will 
be a year of industrial action.” 

The' offer takes the bottom 
leve basic rate from £59.05 to 
£63.65, and the top rate from 
£73.50 to £78.10. 


Dockers 
object to 
deal with 
foremen 

By Our Labour Staff 

THE STRIKE-TORN Port of 
Southampton was thrown 
into further confusion yester- 
day despite the ending of a 
strike by 140 foremen. 

The foremen called off their 
aetion after management 
promised they could continue 
working their old agreement, 
which allows Individuals to do 
more than one shift a day 
when circumstances dictate. 

However, leaders of the 
port’s 1,400 dockers yester- 
day accused employers of 
reneging on a written 
guarantee that in future on 
section would be able to 
work "out of turn," as 
double shift working is com- 
monly described. 

They were unwilling to see 
any group return to work on 
conditions which permitted 
this. 

This was a new blow to the 
British Transport Docks 
Board, which believed it had 
reached a settlement with 
both foremen and dockers — 
both members of the Trans- 
port and General Workers* 
Union — at a meeting which 
ended at 2.30 am yesterday. 

The docks board said the 
port was back to single day- 
'shift working. But a return 
to fall three-shift working is 
being prevented by a continu- 
ing, four-month dispute with 
150 cargo checkers. 


Cash is key to all-out rail strike 


INDUSTRIAL DISPUTES, 
whether over pay or principle, 
tend in the end to come down 
to money: whether an employer 
can withstand the financial loss 
of business or services caused 
by industrial action. and 
whether *he union and its 
members can afford to sustain 
a strike. 

BR's losses from the present 
series of strikes by the Associ- 
ated Society of Locomotive 
Engineers and Firemen have 
been clearly spelt out by the 
BR board. 

It estimates that every day 
of the strike causes it to lose 
some £6ra in revenue and 
Government grant, while leav- 
ing it with a wage bill for non- 
striking staff of £3m — making a 
total loss of £9m per day on 
the balance sheet. 

What is less known is the 
union’s financial position. Its 
finances are important because 
eventually. as last year's 
lengthy Civil Service strikes 
conclusively proved, the. money 
available will govern whether, 
or for how long, an ail-out strike 
could be maintained — and prob- 
ably. therefore, whether the 
union could exert enough 
pressure to shift BR from its 
refusal to pay the disputed 
3 per cent second stage of last 
year's two-part 11 per cent pay 
deal. 

The decision on whether to 
allocate strike pay is technic- 
ally in the bands of the union’s 
nine-man . executive. Under 
Rule 48 (c), it is the executive 
which “ shall determine 
whether any strike money 
should be paid and if so, at 
what rates.” However, the 


Philip Bassett reports on Aslef ’s 
financial ability to back stoppage 


union has no separate strike 
fund — strike pay -has to come 
out of its main general fund. 

The reluctance of the execu- 
tive to dip into that fund for 
this purpose is shown by the 
fact that for the last six years 
at least — covering a period 
which included four one-day 
official national strikes — Aslef 
has not paid out a pennv 

This is partly because union 
discipline is so tight toat mem- 
bers will stay on strike. Aslefs 
Rule 29 (1) makes it clear that 
once a strike has been called. 
“ any member or members fail- 
ing to comply with such deci- 
sion on receiving notice of the 
same will render themselves 
liable to expulsion from the 
society or such disciplinary 
action as ibe executive com- 
mittee might think fit.” 

Given BR's closed-shop agree- 
ment. failure to strike for Aslef 
members may therefore well 
mean losing their job. 

Equally, though, it is the posi- 
tion of the union’s finances 
which precludes it paying strike 
pay. Unpublished union figures, 
approved by its chartered 
accountants, for the most recent 
year available. 1980. show that 
the union had an income for 
the year of £1,271.103, made up 
of £L 160,066 from contribu- 
tions. £111,035 from investment 
income, and £2 from donations. 

Set against this, though, was 
expenditure of £1.256.231. made 
up of £81.622 in benefits to 
members, £1.132,459 in admini- 


stration costs — including some 
£528.041 in salaries and ex- 
penses — with £26.667 in various 
affiliation fees, and £15,483 in 
donations. 

This left a balance of £14,872. 
though added to tins was £6.276 
in recovered income tax. How- 
ever. from this £21,148, a sum 
of £37,514 was transferred to 
the union's pension fund, leav- 
ing it £16^66 in the red. 

To meet that deficit, the 
union had to dip into its 
reserves, so that the amount of 
funding it bad available at the 
end of tbe year was £2,318,677. 

Most of this, though, is tied 
up in fixed assets — mainly 
property. The union's ornate 
Edwardian headquarters in 
London’s exclusive Hampstead 
Is its main asset — though its 
book value price at the end of 
1980 of £730.000 is probably 
less than is widely thought. 

The union also owns the 
freehold on the large house 
next door to its main head- 
quarters, at a book value of 
£170,000. These two, with its 
nine other properties, including 
a house rented to Mr Ray 
Buckton, Aslef general secre- 
tary, amount to property assets 
of £1,194,952. 

Other fixed assets include its 
investments. At the end of 
1980. its quoted investments 
stood at £779.882, though they 
had a saleable market value of 
£974.792. 

They included shares in 


Allied Breweries (market value 
£20,452), Beecham’s (£25,344). 
BP (£28,501), Id (£13,666). 
Marks & Spencer (£21,762). 
Shell (£25.974) and Unilever 
(£14,427). 

Its unquoted share assets of 
£35,471 included a total of 
12,875 shares spread over three 
commercial radio stations in 
Plymouth, Wolverhampton and 
Swansea. 

Its available liquid assets are 
small. According to its accounts, 

. it had at toe end of 1980 only 
£183,463 in the bank and to 
band. 

The union, -claims 27,000 
members, though BR and other 
estimates put it at 20,000-21.000. 

It has some members on London 
Transport, so on its own figures 
It might on an all-out strike call 
out say, 26,000 members. 

If the union paid them the 
£12 a week strike pay made 
available by unions such as the 
transport, and engineering 
workers, its cash balance would 
disappear in less than a week, 
and its total assets — its pro- N 
petty, including its head- 
quarters. and its funds — inside 
eight weeks. 

In an all-out strike, the 
drivers would lose their weekly 
earnings, which BR says average 
£140. They would get no strike 
pay. Further, under the Gov- 
ernment’s “deeming” rules, they 
would have £13 a week deducted 
from any social security benefits 
their families might draw to 
take account of strike pay they 
were actually not getting. 

Given that, even with Aslefs 
rigorous strike disepline, long- 
term support for a lengthy 
strike must be questionable. 


SPEAKING UP FOR SMOKERS 


74% TAX 



Hasn’t cfeatette tax 
gonef 


50% TAX 


13% TAX 


8% TAX 


The figures show 
what proportion of the 
retail price you pay goes 
to the taxman. 




® Sflsgg a 



Betting 


Cinema 


Cigarettes 


Petrol 


Dining Out 


If you’re a smoker, the first quarter of each 
cigarette is yours. The other three-quarters is 
what you give .to the Government 

The Taxman takes nearly £4,000,000,000 a 
year from smokers (nearly £11,000,000* a day) . 
That’s much more than he gets in Petroleum 
Revenue Tax from North Sea Oil! 

Nobody minds paying his dues to society, 


but when that £4,000,000,000 is on top of 
normal taxation, isn’t it time to say “Hasn’t 
this gone far enough?” , 

For more information write for a free copy i 
of leaflet to: Linda Murphy, Tobacco Advisory *ST 
Council, P.O.Box 115, k>ndonSE13HG. ™ 



"Figures quoted are based on Government estimates 198M9S2 
and include cigarettes, cigars and tobaccos, plus VAT. 


TO R4G00 

Jtrrarriaac- 






.10 


Financial Tunes Wednesday January; 2 ft 3 SS 2 


UK NEWS - PARLIAMENT and POLITICS 


Britoil shares to 


carry Cabinet 
veto on transfers 


BNOCto 
lose rights 
over N. Sea 
gas liquids 


Tory rebels canvass compromise on 



Commons Staatch 


BY ELINOR GOODMAN 


By Bay Dafter. Energy Editor 


by Ivor owe* 


THE GOVERNMENT is to 
assume what amounts to a 
power of veto to prevent un- 
desirable interests taking con- 
trol of Britoil. the new com- 
pany which is to take over the 
exploration and production 
activites of the British National 
Oil Corporation. Mr Nigel Law- 
son, the Energy Secretary, 
announced in the Commons last 
night. 

Mr Lawson’s assurances that 
Britain’s North Sea oil interests 
will be fully protected under 
toe Government's privatisation 
plan failed to satisty the Oppo- 
sition. and a protracted battle 
over the Oil and Gas (Enter- 
prise) Bill was foreshadowed by 
Mr Merlyn Rees. Labour's 
shadow Energy Minister. 

A notable absentee from the 
opening stages of the debate 
was Mr Tony Benn, whose 
threat of renationallsation 
without compensation widened 
the rift between Labour’s 
official leadership and the hard 
left when the issue was last 
debated in November. 

Mr * Rees made only the 
briefest possible reference to 
this “ tittle local difficulty ” and 
in reaffirming that the next 
Labour government will seek to 
prevent the legislation leading 
to speculative gains accepted 
that special consideration 
would have to be given to 
shares held by employees. 

“We will have to wait and 
see the nature of the sharehold- 
ing once the Government estab- 
lishes it,” he said. 

Mr Lawson, who forecast that 
Labour's stance over compensa- 
tion would make little difference 
to the attractiveness of the 
shares, explained that the pro- 
visions to safeguard the national 
interest would be embodied in 
the Britoil’s articles of 
association. 

“ In essence we envisage that 
in any situation where there is 
an attempt to take over the 
company the shares held in my 
name as Secretary of State 
should carry a temporary 
majority of votes whatever the 
nationality of the parties in- 
volved." he said. 

Similarily in any situation 
where there were attempts 
directly or indirectly to obtain 
control over the composition of 


the board the shares held in the 
name of the Energy Secretary 
would carry a temporary 
majority of votes on any resolu- 
tion to appoint, re-elect or to 
remove any director. 

Mr Lawson maintained that 
the articles of association — to be 
published during the passage of 
the Bill through Parliament — 
would provide effective safe- 
guards against unacceptable 
changes in control of Britoil. 

He also disclosed that it was 
intended to keep two Govern- 
ment directors on the board of 
Britoil for as long as the size 
of the Government’s sharehold- 
ing warranted it 

Mr Lawson stressed that 
BNOC itself would remain in 
existence as a state trading 
body. 

But the Bill would end the 
corporation’s special access to 
interest-free money from the 
National Oil Account — an 
arrangement which bad been 
much criticised by the House of 
Commons Public Accounts 
Committee. 

Mr Lawson indicated that 
once the Bill had secured 
approval in principle by obtain- 
ing a Second Reading, the for- 
mation and registration of 
Britoil would not be long 
delayed. 

But be emphasised that the 
company would hot become fnlly 
operational until the Bill was 
actually on the Statute Book. 

Once reorganisation of 
BNOC’s assets was complete, the 
Bill would e arable the Govern- 
ment to take possession of the 
corporation's shares in Brjtoil. 

The initial aim would be to 
sell 51 per cent of the shares. 
The Bill would keep open the 
way for a further sale from the 
Government’s shareholding at 
some later date. 

Mr Lawson told MPs: “While 
the precise timing of the flota- 
tion naturally remains subject 
to market conditions, my hope 
is that the sale of shares will 
take place before the end of tins 
year;” 

Once the Bill had secured a 
Second Reading tihe corpora- 
tion, acting in close 
consultation with the Energy 
Department, would tBke appro- 
priate steps to prepare the way 
for the flotation. 


THE British National Oil 
Corporation Is to lose its 
right to buy up to 51 per cent 
of all the petroleum gas 

liquids produced In the North 
Sea. ' 

Producing companies are 
to be allowed to market or 
process all their gas liquids 
including ethane, an im- 
portant petrochemicals raw 
material. At present , zzader 
state participation roles, com- 
panies most sell up to 51 per- 
cent of their output to BNOC 
This is In line with the policy 
for crude olL 

Mr Banish Gray, Minister 
of State for Energy, announ- 
ced tile move in the Commons 
yesterday. He said there was 
ample liquefied petroleum 
gas <LPG) to meet UK needs. 

One of the first offshore 
groups to benefit from the 
new policy will be Shell and 
Esso, which are to be allowed 
to use all the ethane pro- 
duced in their Fulmar Field. 
The gas is expected to be 
used as part of the raw 
.material in the companies' 
£5O0m ethylene nlant being 
constructed at Mossmorran, 
in Fife. Scotland. 

Mr Gray said in a parlia- 
mentary answer that BNOC 
would continue to handle eas 
lionidc sold nnder existing 
state participation deals. Bnt 
it was being told not to exer- 
cise its option in the future. 

The move will consMerablv 
lessen the corporation’s trad- 
ing activities and influence. 
In 1980 the cornoration 
handled about 100.000 tonnes 
of mts llouids, almost all 
a coni red under state nartief- 
oatioTt deals. This year it 
p-rnwt«s to handle nearer 
500.000 tonnes, about SO per 
cent of which will be honeht 
under the terms of state 
nartfeioation. The retnainina 
20 oer cent of the llouids win 
come from the cornoration’*: 
own earn tv interests in off- 
shore oil and eas fields and 
Front commercial deals. 

The Oil and Gas CEnter- 
nrise) Bill, which had its 
Second Read 1 "* vesferrfav. 
will separate BNOCs trading 
arm from the oH exploration 
and production business. The 
corporation’s operating activi- 
ties will be incorporated in a 
new privatised . company — 
BritolL 


A POSSIBLE compromise on 
tie Government’s proposal for 
increasing maximum lorry 
weights seemed to be emerging 
yesterday. • 

Some of the Conservative 
back benchers who are threaten- 
ing to defeat toe Government if 
it presses dts plan to increase 
the top weight 4o 40 tonnes 
were yesterday canvassing sup- 
port for an increase- to 38 
(tonnes, accompanied by a firm 
commitment to build more by- 
passes and improve safety 
standards. 

The Government ' announced 
shortly before Christ mas several 
proposed increases on the pre- 
sent top weight of 32.5 tonnes. 
These ranged from 34 tonnes 
on four axles, through 38 tonnes 
on five axles, and up to 40 
tonnes. 

The proposals appalled many 
Tory bade benchers who were 


acutely aware of (he strength 
of feeling about juggernauts in 
their constituencies. In a debate 
on lorry weights, 11 voted 
against, and many others 
warned that they would not sup- 
poit the Government if It 
ignored the warning signals, 
and proposed regulations to in- 
crease the permitted wai^Ks. 

- It was assumed after the vote 
that the Government would 
have to climb 'down, though, 
during the recess. Mr David 
Howell, the Transport Sec- 
retary, gave a speech in which 
he appealed to Tory MPs to 
consider the advantages of las 
proposals. 

As soon as MPs returned to 
Westminster on Monday, oppo- 
nents of the original scheme 
started collecting signatures 
for a motion calling on the 
Government to rethink its pro- 
posals. 


The motion had yesterday 
been signed by 41 Tory MPs— 
which suggests that there is 
very little chance of the Govern- 
ment getting the ' ori^nai 
package through the House. 
But the motion could form the 
'basis of a compromise. It Wel- 
comes some aspects of the 
Government's White Paper on 
Lorries, People and the. En- 
vironment, and urges the 
Government to submit amended 
proposals. These should indude 
“ stronger action on enforce- 
ment, taxation on heavy lorries 
to cover track costs, an acceler- 
ated j and enlarged road pro- 
gramme of by-passes and lorry 
routes where ' practicable, to- 
gether with limits oh weights 
and dimensions tomes, 
which, * while recognising the 
need to improve the inter- 
national competitiveness of the 
road haulage industry, would 


more satisfactorily meet the 
demands of the community" 

.. The motion does , sot refer 
specifically to the }■. proposed 
range of maximum weight in- 
creases. Bnt it looks as if some 
of the signatories of the motioft 
would be prepared tb accept $8 
tonne lorried with five axl^s— 
on the grounds that there is 
lesj weight on each axle— even 
though they are adamant that 
they ape '.not prepared to 
approve either the 40 tanners 
or the 34 tonners. - • 1. ';- 

Meanwhile, .Mr Howell \ and 
the Road Haulage. Association 
are continuing their efforts to 
sell the full range of proposed 
increases to Tory MPs. 

Around 90 back benchers 
have been invited to Conserva- 
tive Central Office later ' this . 
week to discuss the situation 
and hear the arguments of the 
road hauliers. 


Merlytfl 





relieve " 
Mr Foot 




QUESTIONS about 
■ drivers' dispute and the prcB- ', 


Alliance would consider coalition 
in hung parliament, Rodgers says 


Benn plans 
campaign 
call to left 


BY PETER RIDDELL, POLITICAL EDITOR 


THE Social Democratic-Liberal 
alliance would be prepared to 
link with any other party in 
the Commons in order to pro- 
vide “steady government for 
some period,” Mr William 
Rodgers, one of the SDP’s 
founders, said last night. 

During a discussion on the 
BBC programme Taking Issue, 
Mr Rodgers said that if the next 
election produced a balance 
between the parties, it would be 
“ a matter of common sense to 
look for the minimum common 
programme of economic and in- 
dustrial policy, and then to try 
and get together, rather than 
shouting at each other across 
the House.” 

Mr Rodgers was involved in a 
discussion with Mr Roy 
HaltersJey, the. shadow Home 
Secretary and a former close 
ally on the Labour right Their 
exchanges focused on the 
nature of Labour's problems and 
on the basis of the SDP’s sup- 
port. 

Mr Hattersley’s main charge 
was that the alliance lacked any 
philosophy and its “ brittle 
unity” would break down as 
soon as policy decisions had to 
be taken nearer the election. 

In contrast, he said Labour 
was bound together by an 
“ ideological basis and the 
philosophy of democratic 
socialism.” 

During questioning, Mr 



RODGERS 

“A matter of common sense” 


Rattersley claimed there' was “ a 
very substantial chance of 
changing the electoral college 
for producing the party’s leader 
towards one man-one vote in 
the constituency section.” 

Mr Rodgers stressed that the 
two parties in the alliance would 
be separate but would fight as a 
partnership up to the election. 

The inevitability of hard 


bargaining between, the parties 
in the negotiations on' both 
parliamentary seats and policy 
was stressed last night by Mr 
Mike Thomas, the Social Demo? 
crat MP for Newcastle .East. 1 

Speaking in Cambridge, he 
said that “ anyone who believes 
that changing the face of 
British politics can be done by 
a bunch of milksops who never 
dare to disagree with each 
other, and have no deep con* 
victions that need arguing out, 
should get out of the kitchen 
now.” 

Mr Thomas argued that the 
SDP bad to be satisfied that “ on 
any likely outcome there is 
likely to be a jrough parity in 
die numbers of Social - Demo- 
crats and Liberals elected to the 
next parliament. Indeed, both 
parties accept that anything 
else could fatally unbalance the 
alliance.” 

Mr Thomas has argued the 
need for “secure foundations, 
not generalised good will” in 
the talks with the Liberals. 

He stressed last night that 
neither party would be pre- 
pared to move into the final 
stages of cementing an alliance 
for the election until consider- 
able further progress has been 
made in the two- joint commis- 
sions on constitutional matters 
and industrial recovery, and 
until the SDP has an operating 
constitution. 


By Bln of Goodman, 
Political Correspondent 


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PUBLIC NOTICES 


NORTHAMPTONSHIRE COUNTY 
COUNCIL BILLS 

£1 5m Bills from 2Ctfi January IF 82 to 
21« April 1982 *t 14.5S21i. Apple. 
£75m. £15m outstanding. 


INTERNATIONAL DEPOSITARY RECEIP 
REPRESENTING SHARES PA R VALUE 


S2.50 COMMON STOCK 
J. P. MORGAN A CO. INCORPORATED 


A cash distribution of S0.8S per 
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after the 22nd January 1982 upon 
presentation of Coupon No. 45 at — > 
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(Corpor a te Trust Department, New York! 
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M^rjan .House. 7 Ansel Court. London. 


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at the designated rate. lew ap pitta We 

“9ft. distribution Is in respect of the 
regular ouarterfy dividend payable on the 
com won shares P.V. 52.50 J. P. Morgan 
and Company incorporated on the 15th 
January 1982. 


SOCIETE GENERALE 
USJSQftQQftOO 

Floating Rate Notes Due 1991 


For three months. January is. 1982 
to April 14. 1982. the note* will carry 
an Interest rate of l*"i»*« per annum. 

The Interest due AnrJ 15. 1982 
agent coupon nr 11 w>l! be SUS36.09 
and has been computed on Vtc actual 
number of days elapsed (901 divided 
by 360. 

THE PRINCIPAL PAYING AGENT 
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tot was declared In resoect or the year 
ended 31st December. 1981 (i.e. a net 
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_ Notice Is also hwebv gbren to holders 
ot share warrants to b-irer that coupon 
No. 72 detached from share warrants to 
bearer should be presented tar payment 
In accordance with the snove mentioned 
resolution on or after the ith February. 
1982 to the Hongkong Bank Groan's 
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assured 


BUSINESS ADVISORY 
SERVICES 

7 n» Mury. 1207 Ganra 
Tel: 38 05 40 - Telex: 233*2 


ART GALLERIES 


BROWSE * DARBY. 19. Cork St. Wt. 
714 7984. PHILIP SUTTON Wafrrtotovr*. 


BLOND FINE ART. 33. Sec brine SL. W1. 

473 1230 . gallery artists, until 
23 Jan. 


MANUFACTURE FRANCA IS E 
DES PNEU5 MICHB.IN 
9*% 1976/1 986 LOAN OF 
USS73 ,000,000 


The USS2.500.000 redemption In- 
stalment due March 15 19dZ has been 
met by purchases In the Stock 
Exchange. 


Outstanding amount alter March IS 
1982 . 


USS60.000.000 
drawn lor redemption and 


not vet Presented lor payment 
Redemption as at 15.3.80: 6.5B9. 


The Paving Agent 
BANQUE DE PARIS ET DES 
PAYS-BAS POUR L6 GRAND-DUCHE 
DE LUXEMBOURG 


VITRO 


USS7S.0Q0.000 

FLOATING RATE NOTES DUE 1988 
Extendible at the Noteholder's 
Option to 1991 

In accordance with the terms and 
provisions or the Notes, notice Is 
hereby given that the rate of interest 
tor the period 2 1st January 1982 to 
21st July 1982 has been Used at IS'a 
per cent oer annum. 

On 21st July *982 interest ot 
USS79.19 per USS1.000 nominal 
amount of -he Noio will be Cue 
against Interest Coupon No. 2. 

SWISS BANK CORPORATION 
INTERNATIONAL LIMITED 
Agent Bank 


SOCIETE GENERALE 
ALSACIENNE DE BANQUE 
U3-S20.OCfl.000 

Floating Rate Notes 1979-69-91 


For ji» months Janoarv is. 19B2 
to July 14. 1932. the notes will urra 
an interest rate ©I per annum. 

The interest due Julv 15 . 1982 
i gainst coupon no. 5 will bo SUS76.36 
and has been computed on me actual 
ol *■»»» elapsed 1181 ) divided 

by 38 O. 

THE PRINCIPAL PAYING AGENT 
SOCIETE GENERALE ALSACIENNE 
DE EANQUE 
IS. awmue Emile Reiner 
LUXEMBOURG 


PRESTIGE MOTORS 
(PONTYPRIDD) LTD. 

JANUARY MADNESS 


For January only wo are currently offering any make of new ear 
with interest rates From 

64% PER ANNUM 


On leasc/Iease purchase. Ail vehicles supplied this month at 
sensible discounts on list. P/X negotiated. 12 to 54 months 
lease/lease purchase. This offer is available to business users and 
self-employed persons only. Written enquiries welcome. No 
obligation. Phone for free quotes ac Abercynon (0443 ) 741381/ 
741215 or after hours 407065. 

19 YNYSMEUNG ROAD. ABERCYNON. MID-GLAMORGAN 
Mon.-Sat. 10 s.m. - 7 p.m. 


FOR NEW CARS. 

THROUGH 



. THE 
EXPERTS tN 
PERSONAL IMPORTS 
Itwn. w r. int lnui 


PRICE EXAMPLES 
FOR 1982 MODELS 
Special Offer placed 
up to 28th Feb. 
1982 

Ford Granada GMa 

Saloon 2.81 

Out Price LB. BOO 
UK Price £12.845 
Ford Granada GMa 
Saloon 241 Airto 
Our Price £8.559 
UK Price £12.298 


SAVE POUNDS & POUNDS 


ROYAt B ANK OF CANADA 
DIVIDEND NO. 378 


_.MgFIC E IS HEREBY GIVEN th« a 
Dividend of SO centa orr iharp uoon Hir 

aiiwi kSSu h STbSS 

orewoc raf ihp current Quart#? aim will 
be payable at tin? Hh|nk arid ICS Branchr" 
or after fvbmarr 24. 1982 

Bv ^ fl R.7.Mrs d 

Cgrooratc s« r *t 4ry 


LEGAL NOTICES 


LICENSING ACT 1964 


LUMLEY CAZAIXT. 24. Davln SL. wi. 
499 SOM. Original JYInts by Metis*. 
mm. Plano. «c. 


LEFEBRE GAILKKY. 30. Bruton St.. W.l. 
Of-495 T57Z. AN EXHIBITION OF 
IMPORTANT XIX abd XX CENTURY 
WORKS OF ART. Moa-Fm. TO-5. 


LOCAL AUTHORITY BILLS 
£9,000.000 Hills isuta date 20th 
January maturing 2 1st Amu at I4*i«%. 


APOUcatiom totalled £70 million and thev* 
irt £58 million Mill outstanding. 


BRIGHTON BOROUGH COUNCIL 
£t.4Sm Mils issued 13th January 1982 
duo Tdtii Anrlf 1442 at 14 Total 
apgllMtfot* £4. 35m. No Other trills out- 
standing. 


MARLBOROUGH. A- Albemarle St. W.1. 
AUX KATZ RECENT PAINTINGS, 
until 6 Feb. Mon-Frt, 10.5X0. Sat. 10- 
12.30 pm- 


MATHAF GALLERY. 52. Mmcomb Street. 
London? SW1 Tel. Z55 0010. SpacMiiata 
in 19th Corturr and Contemporary 
nlRttip I* ARABIA. 


White. 


WHITECHAPEL ART GALLERY. 
chancIHft* St 337 0107 Tube AJdMte 
To^4 JaU.BRITISH SCULPTURE 
IN THE TWENTIETH CENTURY. Pm« II 
1951%. Sun.-Frt. 11-6. , * Sat Adm. 
£1 CSOn). Fr** Mon. 2*8. 


To whom it may concern 
1. PI AHA SINGH now tossing »t 5 
Ardath Read, Lnieesior. I^uy, durlnn 
the Ba8S Oix months carried on the trade 
or calling ol Club Secretary do hereby 
give notice that h is my imrntion to 
apply a: the General Annual Licrnc'mg 
Maetmg for the MiO di9iri« io bt> hold 
at the Town Hsll. Leicester on the 4rh 
day of Fobrusry nex: lot the nront m 
me of a Justices' licence, nutlioriiinp 
mg to sell by retail inisricniinn Uauoi 
ol all descriptions lor consumption 
orttier cn or otf ihp prenveos siiuero 
I at ihs (UOiHVl floor M Law Street 
Loicoatrr known by -hr, , nn •• BPlJ j 

POT Club ” ol which orcmises Manihr 
Singh. Ramanbhoi Kan;i Paid and 
myself are the nwnois It i 3 tny 
intuition id bdoIv to thn Justices in 
iMort in such Justice* ' ucoae* a condi- 
tion that no infn»icatmn i iq u j r shall be 
supplied otharw.su man 50 days i" 
■ny 12 month period D"d that I s h «H 
notify the Pnl«ca d ail d»vi when sales 
shall bn made by R.v>r.-i ihom at lN3! 
48 hours’ nonce bol?r»h\nH. 

Dated fbii day of Jinuary 19H2. 

IRONSIDES 
Solicitors for me Applicant 


Contact: Prttt^'i J^rotave Cars 
AIMnati m Rd-. Whitchurch. 

fmw: vSS^sSiara aoe 


‘ 24-br. anvwvftita K-rvlcr 
N. trtriUMn 


Mltart <D232> 840291 


CLUBS 


m-sr ouu.tad W Others 
ooiley of fah^M^.abd value for mwvvv 


Supper from _ 

murtclans. 

floorehowl. 


1.30 am. Ditto and, Boo 

musician*, glamorous hosmm. •Kiting 
109 Regent 5*. ts« 0557. 


THE~GaS light or St jamoa's. London's 
more interesting Businessman' 1 /light club 
2 nark, restaurant dancing. Cabaret spots. 
Happy hour 8-9 pm with all Mr drinks 
at half price. No membership rcuuired. 
Open Mon.-Frl. 8 pm-2 am. SaL 9 pm» 
r.ri — 4 puke of York street. SWt. 
Tel. 01-930 164814950. 


THEATRES 


VICTORIA PALACE THEATRE. Opens 
March it — Limited Season. Previews 
March 5-10. ELIZABETH TAYLOR Id 
THELITT 1X FOXES bv LILLIAN NELL- 
MAN. Advenee BO* omut oom 01-834 
1SI7-8. 01-828 4735-8. Credit cards 
aneuted- Greup sales 379 608i. 




<r„ Coveot Gdit. Box OffIC. ___ 

ROYAL SHAlCESPfiARE CBMPANY 
WARBHOUSE FESTIVAL 1 


Hum 

1868. 


IB^an-X Feb 


DRAMA 

riSiOM mtro- 

Panel Chaired 

u, rvun rrew.- - iV-S 0 *™""- Tarn0r 
Peter Brook- Scats £1.00. 


adventure musbU Until Sat. Mon-Sat 
2.15. Frl h Sat 6.45. 


oiresiTticFf 2-7T6S ' cc’ ei’vsg &||£' 


WHITEHALL. *« # 

OT.axn B01 — ,, 

Cr«IP MIK WI P 6061 


DtNIST by JCH4N WELLS. Dlrreted br 
OICX CLEMENT. MON-SAT eves S IS 
r> m. MAT SAT 5.00 P«" 

WYNOHAM'S. S B3& 302B 


CC 379 6565 

Group rcdKtiSM JS6I COLIh 


rEMARY HARRIS 


8lakely 7 ncVfM* 
ARTHUR ^ 

7^0.' 

mat 2.30 

YOUNG VIC fWaWloo). 
Trm'l . Thu 7.30. Sat 
KING LEAR. Jn 4 
MOKTIMErs CASEBOOK. 


ALL. 


RLAKEMPRE, 


Wed 




928 RJ83. 
Seats u vs. 
Sat 


Site your cars 
intheFTevery 
Wednesday 



The Financial Times mnvpubWiesllator Car 
•dvartbementaoveiy Wednesday In addition 

to BtoSarunday Motoring Psga.ONy £2000 

par *ngle cohaim cantimafre (Mkwnum 
soa 3 dm} or £&00 per fine {Mewnina 


Fcr father deOBs contact Snon Boid 
Casated A dm t BBi Y flt Drpa&mt 
FwtuaintiK 

[iJCavm Sm*f £onrtm EC4P487 
TataphonsO 1-248 8000 


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MR TONY BENN and Iris 
advisers are preparing a, gta te- 
ment to pat to a meeting of 
left-wing Labour groups on 
Saturday calling on the left to 
join in a new campaign aimed 
at winning the next election fdr 
Labour on the basis of party 
conference policies. 1 

The statement is expected to 
stress, the need for tolerance 
and unity in the run-iip-to the 
election. But the inference will 
be that the left will feed justi- 
fied in breaking the new truce 
in the party if the right 
attempts to reverse any of the 
policy gains made by the left 
over the past two years. ,> ' 

' The statement will amount to 
the first formal respoose bylMr 
Berm to events at Bishop’s 
Stanford two weeks ago. It is 
aimed at marking. the beginning 
of the new phase in the left’s 
tactics, and .reflects -a recogni- 
tion by the far left that it is 
unlikely to get anywhere if it 
trie topush any -further majors 
changes through 7 the party. 

Delegates at the meeting wifi 
be toM that becsrase -tiie left 
has succeeded in getting the' 
reforms it: wanted- 1 -*©* in 
terms of policy and the party 
constitution — it should concen- 
trate its energies on getting a 
Labour .. government elected. ■ 
That government- coiild then 
put the policies into practice- 
rather than spend more time 
on internal . Labour - .Party 
issues. . . . - 

Delegates will be urged . to 
look outwards, and campaign 
against both title <3oveniment 
and the SDP. - 

The statement is expected to 
lay down a list of fUtnre objec- 
tives for the left These are 
likely to incldde insuring that 
the paiiiamentary party sticks 
to the policies already agreed 
by conf^ence-^uj^orting the 
unions in toe fight against the 
Government’s industrial rela- 
tions legislation and backing' 
Labour councils in their fight 
against the new controls on 
local authority spending. 

The final draft of tire pro- 
gramme still has to be com- 
pleted but it looks as if . the 
emphasis will be on presenting 
the left as the responsible, out- 
ward-looking force within the 
Labour Party, instead of the 
destructive, divisive, force the 
right sees it as. 

Mr Benn has dearly been up- 
set by suggestions that the left 
does not really want Labour to 
win the next election. He argues- 
that on toe contrary, the left has 
everything to gain from a 
LabonrTictory now the party is 
committed to toe kind of policies 
the left believes are necessary. 

Though Mr Bonn’s support - 
remains strong in the con- 
stituencies he ■ has become 
steadily more isolated within toe 
parliamentary party over the 
last few month*. Since toe 
party conference, all the various, 
groups which make up toe “ out- 
side left” have been taking 
stock of their position, and . 
though some organisation* like 
toe Socialist Organisers, seem, 
determined io carry on tire fight- 
Ing withm toe party, most -of the 
more influential speakers on the 
left want a truce. 


■ got off the ground yesterday .' 
when the Prfche ; Jtttefcrtetr ■■■ 
returned to toe ConMnon^to ' " 
: face MBs for *he 
since toe Omstm as recess. . 
Industrial- disputes . and toe 
state of toe^ ^ econoany.^ 

: pushed to ode side. hr. tifeo :> 
MPs— rape and the YorfosHte ; • . 
Bippeir.. ;•* " T ; ' _ ;• ^ 

Prime Minister’s Question Tihne \ V 
started with Mr Alan 
liberal chief wtup, -asXSn^ foar^". - 
Mrs Thatcher's reaction to toe ' ; ’ 
TV programme whicto showed';: - 
Thames Vaflley pottce ; gSvnjg. ." ■. 
a tonjto gritong to * woman.- . 
. wbo said && bad been raped.^ 
Yes/ Thatcher shared* 
concern . about this / fTO* * •. 
; granflhe. and- toft at w^vkeIV * 
‘ that' women shoifld' imve: . 

fidence in toe J ktfility' 

!aw: to protect- them agamat v 
. this "violent, destestnhle , ^ 
odious crime.” - • . Vv ~ 

TMs was . fWJowed - fry} --at V V 
• scatotog ; Statement from Stor f 
■WSiiiam ' ■WhStotarw, ' 

Secretaary, on the: way West:/-, 
Ybricshire ' pbBce- had- , 
ducted the brvestfeartou r . 
Snto toe Yoricshire 

Giving the summary bf fiSe ' *. 
enquiry carried out by Jffic'... : 
Lawrence Byford, an Xhspefcw; >%• 

- tor ‘ of Constabulary, 

. Whitetaw safid there -WBre\'/ 
major errors of Judgment 1^: 
toe police mid some ineffi-. . • 
edencies in the conduct ‘;of' : 
toe operation. But tor this - /'- 
Peter Sutcfiffe,; tire kfiter ‘ 
would' have been idetrfi&ed / ■ 
earfier and fives saved. ? ^ -r 
After 1 - these barah critfcims > ‘ 
Mr conciuskBis . 

seemed a bit of an 


antj^ 

climax. He did not seem* 


iudlned-4p take any string: 

. disdpUniry 'action. 'There 
'would be no sackings, but 
the handling of the BSpperC - 
investigation ' would be t wag:-:- 
• into account when tep poi"' ' “ 
men in toe force came 
1 f or ptotootom.- : ?• 

■Wife these Itofid zcattere 

of toe way the HmKe tui r ... 

its Monition: to toelf^cari#; 

• meiit Bsti -pwvpeing ti^ KCii :i 

- off tire. North Sea b2 prt^dao- 
ing, burinrasr of BNOC. '-."', ■ ■ 

De^te. 'toe OppoaStioa’s ifer- 
' ctmmltmebt ■ tovtotont 
a massive attack - Oz? : : tKs ' 

1 proposal -only, about half a 
dozen labour feicfc benchers V. 
bothered Oo turn up for toe 
.opening speetoes- , •• •: •'• 

-Bar : ;• toe- ' : inost-‘'- Jntifexidag -A . 
absentee was jMr Tony 
toe fqrmer Ehengy Secretary. • 

. Ob' ffiie. last occasion toat : 
enetgy :.wa» debated' in toe ~ 
HimseTttr Mchaei- Jboti the'- - 
■; Opposition leader •, hadv .'.- 
aHowed the- prontonent left-?, 
winger to 'speak 
. Front 1 Bench: : despite \ i 
protests of otoorrnembereipCC' 
&e sto&dkrvr Cabfaret - v 
Hr Benn had promptly 
them by giving a commitm 
ihta a future Labour 
. - ment would xena 
North Sea oil without 
satiom . - - 

Presumably Wedgie . has: 

. been gagged by so me. see 

- sub-clause in the great- p 
settlement put together 
Bishop’s StortfontV .. ..-V' 

Ever ready to put the -boot 
Mr IVigei I^awson^ fee _ 
Seerettcy, ddledo-.ou 
Merlyn. Rees, Labour's energy^ ; 
spokesman to disown thisrrew- 5 
posed “ tireft”' ■ > . ; - ' " 

So rambling rwas Mr 
. reply that it/ seemed he -was - 

- going tny nyoid the subject^ 

- ^together/. .-But eventjreHy'. 
he -repeated ..the . statement - ^, 
whkb bad/ been drawn up 'by 
the shadow; cabinet; .A BNOC - 
areets would be restored - tu 
public ownership.: but 'private - 
speculative gains made at the - 
nation’s expense woidd not.be- -.- 
handed fiadc. ]/ . ; 

Mr Foot, -Who had -been keeptofl-.' - 
a watchful eye on Hr Rees, 

■ looked' relieved and satisfied -. - 

- -at ..- ^ toe^ rqretiiibn'r of tius'-v 
■ ■ cobbled-together formula. A v : 


JiduL Hunt 


Police errors blamed for 
delay in arrest of Ripper 


V-2 


BNANCOUL TIMB REPORTER 

THE YORKSHIRE RIPPER. 
Peter Sutcliffe, would baite been 
arrested earlier —trad many of 
his victims saved — if the 
police had not made “major 
emus of judgment 1 ’the Home 
Secretary said yesterday. 

In a Commons statement on 
the review of the Ripper case 
Mr Whitelaw read MPs York- 
soire police bad given “ exces- 
srve credence ” - <© lottan' and ; 
tape from a man. claiming to be 
"Jack the .Ripper*-.." 

“With hHub^bt H is clear 
that if these errors -and iaeffici- 
ences bad non occurred . Peter 
Sutcliffe would have been iden- 
tified as a prime suspect sooner 
than he was,” Mr Whitelaw 
said. . . - - . . : V\' 

Mr Whilelaw skid later: 14 1 - 
have to accept that If Sutcliffe 
had been arrested. eariiej: there, 
would have been toose who were 
subsequently killed who would 
not have beeji.'^- v 
^ The review carried out ' over \ 
five months by Mr Lawresds 
Byfotd. an Inspector df Con- : 
isubulaxy, found there' were- 


• major errore- of judgment' by : 
the West Yorkshire. Police, .the 
Greaferlfancbegier^ torce-and- a 
aun^erof ofeer forces innfived. 

,A serious . handicap was toe ' 
major - ixkideM' Toten which, 
rather than ''befog tire-qffeictive 
; iferto dt .tht wltold/pcdie^ppeto'- r 
t ion,, became.- overloaded 
unpnicessod^iMonnation with 
thn result that vital cwmections 
between . : lasted', -pieces- 
information .^ere^ ov«rioflSe4.- 
sadd^tocrentiew .. -A 
; -&ttdfi®e;;3vas interviewed by 
jxtoce.tavrejtigating toe Kipper 
case, bnt Jtore; occasion^ between : 
^-arteet; im Jim tuxy 
MW 1 .V ':! 4 .. -.-r i - ■ A 

yfldtedaw.- h4d. ‘ti».' Cbm- 
.vtoas jte cotdd not jam/dm - 

that -all the cffirere.re^pcflSslhto 

foTrto* ’Ripper inafesti^oDS 

re. voV; : .>;.v 

t He b*d t&d & 

: -jj ; *»• ma 
prepai wTtbLagrtovfa jufcsak*' 
officere bctag; '.promoted'' to " 

: asristant dhtef constable' - ^ " ;V 











• The Royer name stands for innovative design, 
perfoimanc^^ prestige, tecfeologieal development and 

achievement _ - - 

> Qualities that have long made Rover a very special 

; pp l driving experience, - 

- Never more so than now 
V The ndv Rovers come to you with advances in 
styling, in handling r in economy, in comfort and 

m finish. t . 

The sleek aerodynamics or the Rover body have 

been further advanced with flush-fitting restyled 
headlights, a newgriUe, wraparound bumpers ana a 
handsome front spoiler for improved road- holding at 


window for greater visibility, guaranteed even in poor 
weather by a new, programmed rear wash-wipe system. 

We’ve redesigned the interior of the new Rovers 
as well 

The new, low profile instruments binnacle and 
new centre console combine to give you fingertip controls 
and quick-to-read instrumentation all in a totally new 
driving environment 

And, as you sit back in supreme comfort, you’ll 
appreciate that a traditional Rover luxury- walnut 
panelling— has made a welcome return? 

You’ll also welcome the fact that we’ve revised 
the rear self-levelling suspension* and upgraded the 
braking system to bring you a more positive and 
responsive driving experience. 


There are eleven lustrous Rover colours. 

And, by using the world’s most advanced and 


climate. 

We’ve also extended service intervals to 12,000 
miles or 12 months. 

WeVe not only developed the cars, we’ve added 
to the range as well. 

With a new, 104m.p.h. twin carburettor five speed 
2000 model to add to the Rover driving experience. 

The six new Rovers. From the ultimate luxury of 
Vanden Plas to the sprightly economy of two litres. 

Ask your dealer for a test drive. And an advanced 
driving experience. 


ADMVIMCHMG THE DRIVIMG EXPERIENCE 


^, ^,^ ra ,^23<>,reaL8l/TOlWgX^56HPR^I^&6LTOK«.C3^75 l ^32J.ra|ML'.00m.M(m 
















Financial Times Wednesday Januaiy 20 1982 


TECHNOLOGY : editcdby alan cane 

GEOFFREY CHARLISH reports on the hotels’ computer market— ALAN; CANE looks at office automation ■ 


GENERATORS tonom- 
WATER PUMPSjjptobwchbs 

UAMUFACUfftEDfiY 

ATALANTA 


Modular system for Revolving around human habits 


■ ENGINEERING UMSTHD - j 
-Hansatlh Timing Estate, Hiriwrth Law, 
Chedsey. Storey, Bigiani 

- Cbertsay 62655 TdescffilSSaS 


the hotel ‘lodgers’ 


WITH THE Introduction of 
three new products on which 
some ¥15m thas been spent in 
development in the U.S. and 
UK, NCR is making a new push 
in the hotel computing systems 
market 

The most impressive of the 
three is called MLS (modular 
lodging system: in the U.S. 
“lodging” refers to the whole 
hotel industry). 

It is based on twin proces- 
sors — with one on standby in 
case of failure — and a common 
database on which everything 
is recorded including data from 
reservations, registrations, room 
management and guest account- 
ing, all entered on the custom- 
ary visual display unit. • 

Even phone call costs can be 
automatically received from a 
phone monitoring system such 
as TeUag or Tiger and, later 
this year, it will be possible to 
receive and post entries from 
the company’s 2160 bar/ 
restaurant terminal, also intro- 
duced this week. 

The system, which costs from 
about £50,000, is aimed initially 
at hotels in the 150 to 500 room 
range. It can be customised 
easily on site to meet the re- 
quirements of a particular hotel 
and can be installed in phases 
starting with reservations and 
later encompassing all the front 
desk operations. 

It can also be connected to 
NCR’s existing hotel accounting 
systems so as to integrate such 
items as accounts payable, pay- 
roll, ledger operations and 
stock control. 

A particularly useful staff 
facility is called “ mafd dial in ” 
in which a chambermaid can 


put a vacated room out of opera- 
tion on the system if room re- 
pairs need to be carried out — 
another room will automatically 
be allocated in its place at the 
time of guest registration. 

MT.S can be arranged to 
accommodate up to 10 direct 
visual display terminals, 'up to 
10 inquiry terminals, and up to 
eight printers on which a 
variety erf management reports 
can be generated, customer's 
accounts generated and expendi- 
ture vouchers from other parts 
of the hotel validated (over- 
printed). 


Expenditure 


Keystone of the system Is the 
reservations module, ' at which 
basic data about the customer 
and his length of stay is 
entered. By keying in arrival 
and departure dates, name and 
address, type and number of 
rooms needed, the telephone 
clerk can easily see what rooms 
are available. From then on, all 
other data about the customer's 
expenditure at -the hotel is 
accumulated, to be finally 
printed out on. his bill on 
departure. 

Group reservatiods, advance 
deposits and special guest ser- 
vices can all be dealt with. 
Then, on registration, the 
customer does not have to fill 
forms or cards. On departure 
he gets an itemised bill. 

NCR is also introducing a less 
comprehensive system called 
the 2950 for hotels with up to 
250 rooms. The system has been 
developed in the UK and costs 
under £7,000 with software. 

It is a free-standing, micro- 


processor-based system with 
screen and keyboard, 27 pro- 
grammable function keys and 
slip, receipt 'and journal printers 
built in. 

The guest accounting function 
deals with registration through 
to checkout New guest accounts 
are started by keying in a room 
number which is automatically 
checked against a memory- 
based room table for availability. 

When a room is allocated, a 
new guest account is headed 
up and the cashier indicates the 
room rate, enters the number 
of guests and departure date. 

Charges may then be posted 
to the account by keying in a 
room number and the account 
number — the terminal will pick 
up the previous balance. Charges 
are posted by using department 
keys or a pre-set key. End of 
day reports are produced auto- 
matically. 

NCR’s third new offering is 
the 2160 bar /restaurant point- 
of-sale terminal. This has a 
sealed micro-motion keyboard 
and can be connected to printers 
in kitchen and bar. 


IBM AND XEROX agree on at 
least two important aspects of 
office automation. First, that 
waring up; the office is not as 
easy as the salesmen would 
have it. Second, that their 
systems cannot be all things to. 
all business people. 

The IBM case was discussed 
late last year (see this page,. 
December 23). Mr Paul Strass- 
mann, vice-president, strategic 
planning. for the Xerox 
Information Products Group, 
last week defended his com- 
pany’s strategy. 

Mr Strasamann’s position at 
Xerox gives him charge 
of Ethernet the local 
area network on which Xerox is 
staking its future in office 
systems. 


- The Ethernet .concept has] 
been embraced by Digital] 
Eqirfpment, biggest' mini-' 
computer manufacturer in the 
world, and by the pretigious 
semiconductor house Ztiog, 
both of which are helping to 
develop the system, but there 
is plenty of opposition. 

Last year, & reffort from a 
U.S. consultancy Strategic In- 
corporated said that Ethernet 
would be Xerox's undoing. And 
others have emphasised the 
importance of more modern 
local area networking tech- 
nologies based .on broadband 
techniques rather than base- 
band as in Ethernet 

A few days ago (see this page, 
January 13) 3M introduced a 
device to enable baseband users 


Ethernet Architecture 


r~iT 


Items ordered by customers 
are entered by individual 
waiters using access codes con- 
tained in magnetic “pens”, or 
via the keyboard, and the items 
appear on a small screen for 
verification. The orders are pre- 
pared in kitchen and bar from 
the displays there, with cooking 
instructions where necessary. 

A complete list of menu items 
with plain English description 
as on the restaurant menu can 
be stored within the system and 
the pricing is automatic. NCR 
is on 01-3SS 8248. 




NETWORK LAYER 




(SERVER LAVER 





I io convert to broadband- . 

Mr Stras amam r • * . iy "" tro- 

impressed by the Strategic 
report, and by the supposed 
. virtues of broadband teejt 
no logy (which enables, the 
user to transmit several sets' of 
data and television pictures 
down a single cable). 

He said: “There was not a 
single fact in the report. Its - 
conclusions were based on 
opinion and were based heavily .* 
on old history and personalities. 
There was no cost analysis to 
support £ he case — and that is 
the pivot of the local area net- 
work argument.’’ 

On baseband * he said: 
“Ethernet cannot be afl thing? 
to all people. But its utter 
simplicity makes it possible for 
the user to instal a local net- 
work more simply and much 
cheaper than any alternative. 

Local area networks make it ; 
'possible to move ' infonnationv 
between office machines — word 
processors, ' memories and 
printers— quiddy, reliably and 
cheaply. 

The Ethernet version (we 
- diagram) depends on a single 
coaxial cable to carry messages - 
from terminal to terminal. This- 
<is the network layer. The user 
layer contains the office., 
machines themselves. 

The user layer is connected- 
to tiie network by an Interface, 
a transceiver and a tap which 
code the data and transmit it to 
the network at tiie appropriate 
time. 

Smart; software ensures 
messages get through to their, 
destination, another terminal or 
a device in the server layer 
such as a memory or printer. 

That it is a good system is 
acknowledged by the number of 
companies which have taken out 
licences to work on variations — 
Hewlett Packard, for example. 

IBM, however, is known to 
favour a system of token pass-' 
Log which enables messages ' to 



Blowing tiie 
bubbles for 
photocopiers 


Mr 1 Paul. Strassman, Vice- 

'President .of . the Information 
Products Group of Xerox - 


be given, special priorities. . 

Mr Strassmann' said: M -I wHL 
not take the rabbit view- that 
. token -passing is . balderdash— -in 
a ‘ missile system, yon might- 
want to give -priority- to a - 
message tbat th^fcelium- tanks 
were about to explode.” - . 

Mr Strassmamv - » former 
data processing ‘ director - with 
General Foods and Kraft both: 
of whose soils . are computer 
engineers argues: “Xerox is a 
company .that revolves around 
the habits of the human race. . 

Ethernet could’ easily be con- 
'verted to broadband. “It is. a 
nothing, these are . / mon- 
discussions. I wish people would 
discuss the' important issue like 
the lengthy period of social and 
economic change that will be 
necessary before dectrbnac 
office ■ systems are fully 
accepted,” Mr Strassmann said. 
“ Technology is cheap; -human 
beings are expensive.” • 


Low toxicity 


ANGLOVAAL GROUP 


Mining companies 1 ' reports - Quarter ended 31 December 1 981 


AH companies mentioned are incorporated in the Republic of South Africa^ 

All financial figures far the quarter and progressive figures tor the current year to date, 
except those of Loraine Gold Mines, Limited far the financial year and quarter ended 30 
September 1981, are unaudited. 

Rate of exchange on 31 December 1981 R1 DO — £0,54 £1.00 = R1 55. 

Development results given are the actual sampling results. No allowance has been made 
for adjustments necessary in the valuation of the corresponding ore reserves. 

Shareholders requiring copies of these reports regularly each- quarter, should writs to the 
Secretaries, Anglo-T ransvaal Trustees limited, 295 Regent Street, London W1 R8ST.- 



Robot emphasis 
in conferences 


Prieska Copper Mines 
(Proprietary) Limited 

Issued capital 54 000 000 shares of SO cents each. 


Hartebeestfontein 
Gold Mining Co. Ltd. 

Issued capital"! 1 200000 shares of R1 each' ' 


Eastern Transvaal Consolidated Mines, Ltd. (continued) 


Development 


Operating reaufts 
Ore milled 


C oncentr a te produced 


Concentrates despatched 


Financial result* 
Operating profit/I Iosg) ... 
Non-mining income 


Interest paid .... 
Netprofitfkres) .. 




* Quarter . 

Sk months 



Quarter 

Quarter 



ended 

ended 



ended 

ended 


31. Dec. 

30 Sept. 

31 Doc. 



31 Dec. 

30 Sept. 


1981 

1981 

1981 



1981 

1981 





Operating results 




...,t 

716000 

690000 

1406000 

Gold 








Ore mined ............. 


759000 

750000 





Gold recovered ......... 


7 513.40 

7 632.00 


24211 

22 074. 

46295 

Yield 


99 

102 


37 501 

35319 

72820 

Revenue 

Rt milled 

130.61 

1 29.49 





Costs 

R-'t milled 

5623 

5725 






Fit milled 

. 7428 

72.14 


25144 

38663 

61807 


ROOO 

99131 

97114 


32 917 

31354 

64271 


...ROOO 

42679 

43 011 






...ROOO 

56452 

54103 


ROOO 

ROOO 

ROOO 






(4401 

1 648 

1206 

Uranium oxide 




..... 

' ''lOff- 

160 

268 

Pulp treated 


759000 

750000 

- 

' 032) 

1S06 

1474 

Oxide produced 

Yield 

....Jcg/ 1 : 

109357 

0,14 

109 146 
0,15 

rrtr f 

108 

35 

203 







- — 

- ' 

-Financial results 


ROOO 

ROOO 

■ Mil 

(440) 

1711 - 

1271 

Working profit - gold mining 


56452 

54103 


Six months 
ended 
31 Dec. 
1981 


Sampling results: 
Sampled ....... 


...m 

•ZT60 

- 2208' 

.4368 

,...m 

1342 

1550 

2892 

...cm 

196 

192 

194 


7.3 

6,4 

&B 

.tmg/t 

1425 

1228 

- .1320 


1509000 
15 145.40 
. 10.0 
130.05 
55,79 
7326 
196 245 
85690 
110 555 


Dividend 

Interim dividend No. 03 of 60 cents per share was declared In December 19BT and Is 
payable in January 1982. 


Capital expenditure 

Outstanding commitments at 31 December 1981 are estimated at RIS7000 
(30 September 1981 : R1 57 000). 


1509000 

218515 

0,14 


Loraine Gold Mines, Ltd. 

Issued capital 16366 986 shares of R1 each 


ROOO 
110 555 


Loan repayments . . 
Capiiat expenditure 


pvriie and sulphuric add ... 
Non-mining income ....... 


Development 
Advanced .... 


Interest paid .......... 

Net royalty receipts 


Financial 

Despatches, which vary from quarter to quarter, are brought 10 account at their 
estimated receivable value. Operating profit takes into account adjustments faBowjng 
final price determinations on despatches made during previous quarters. 


Profit before taxation and State’s 
share of proTt: .................. 

Taxation and State's share of profit . . . 


Profit after taxation and State's 
share of profit 


Taxation 

No taxation was payable as the Company has art assessed loss. 


Capital expenditure .............. 

Loans repayments 

Dividends - 


Capitol expenditure 

Outstanding commitments at 31 December 1981 am estimated at R994000 
(30 September 1 981 : R775 000). 


62898 

123179 

271 

569 

427 

460 

63054 

123070 

35494 

67453 

27 560 

55617 

3204 

9249 

455 

481 

— 

42000 


Operating results 
Gold 

Ore milled .................. ..t 

Gold recovered kfl 

Yield ...................... a-t 

Revenue R/t mated 

Costs ................ R’t miBed 

Profit R/t milted 

Revenue ROOO 

Costs ROOO 

Profit ROOO 


Quarter 
ended 
31 Dec. 
1981 


Quarter Financial 

ended year ended 
30 Sept- 30 Sept. 
1981 1981 


410000 
1850,10 
4.5 
59.15 
64.65 
450 
24255 
22 408 
1847 


411000 
1805,10 
4A 
68.10 
5332 
428 
23 879 
22120 
1759 


1641000 
6190.60 
33 
5098 
47.92 
3.06 
83 658 
-78 643 
5015 


Consolidated Murchison Ltd. 

Issued capital 4 1 50 000 shares of 10 cents each 


Development 

Advanced 

Sampling results on Vaal test 

Sampled m 

Channel width ..........cm 

Channel value -gdd , gt 

...cm.g't 

— uranium oxide . . .I>ftl. 
cmJigT 


Financial results 

Working profit - gold minfog ....... 

Loss on sale of uranium oxide 

and pynte 

Non-mining income .............. 

Slate assistance ................ 


AT LEASTthree organisations 
are planning conferences -con.-' 
ceming. manufacturing 

between now and eariy spring. 
There is. a heavy emphasis on 
automation and robotics. 

One of. the -first is a two-day 
event to be .held in* "London 
at the Royal Aeronautical 
Society’s Lecture- , Theatre on 
February 4 and .SI V.' 

Sponsored by the Technology 
Transfer Society (Ql 242 4045), 
it is entitled “Factory, of the. 
Future.” Of the 13 speakers, 
.10 are' from the UjS; and the- 
topics' include . government/.' 
industry planning, batch manuk : 
facture, cellular manufacturing 
systems,' computer „ aided' 
quality . assurance, materials, 
storage - and ; retrieval, ' shop . 
floor data cdHection, ' software, 
artificial .- intelligence . for 
-robots and process planning; 

IFS (Conferences) of Bed- 
ford (0234 S53605) has a pro- 
gramme that extends from mid- 
February through to Pecem- 
ber. The first oue day meeting ' 
is called “Assembly Automa- 
tion ” and will be held at the 
Cafe Royal in London on Feb- 
ruary 16. Introduced by 
Professor Keith RathraiH of 
Cranfield Institute of Tech- 
nology, the speakers • are all 
from the UK and the- day’s 
session will end with a one- 
hour open forum. 

Other one :-day meetings 
include “ Lasers in Manufacture : 
mg” (London, February .23,' 
repeated oh November 24) and 
“ Vision and Sensing ”■ (London, 
March 25); 

Subjects to be covered later 
.in. the year include' electrical 


Burglar lamp 


BEAT the bupgfeir with' your 
hahdrcrafted pottery lamp is the 
message from Security and Com- 
munication Systems <rf -162d,: 
Tankerton ■ Road,' .•■Tankertan, 
Wbits&ble, Kent * 

The company is not suggest- 
Ing lhatybu hit tiie biurgjar over 
the head with the . lamp, but, in- 
stead, jndtM ste intruder detee*. 
tioo. system in. the base of the 
lamp- r : r 

If you ^on’t like that Idea 
you can have the .system: in a 
w abh# veneered cabinet ■ The' 
company -'Claims that other ete~ 
mentS;— 'such asanoutsidewaH 
siren or additional remote detec- 
tor heads are self-cumadned, 
ample to position and connect 
and'" win protect your property 
foir life.” 

. Full, technical details are 
available on_0227 .274825,. 


Interest paid, siores adjustment ■ 
and service benefits .............. 

Tributing royalty payable .......... 




Operating results 

Ore mated .... . ... .... • •■■■■.■ .t 

Antimony concentrates plus cobbed 

ore produced -.-. .t 

Ant i mony concentrates plus cottaa 
! ore sold •* 


Quarter 
ended 
31 Dec. 
1981 


Quarter 
ended 
30 Sept. 
1981 


financial 
y**r 
ended 
31 Dec. 
1981 


Dividend 

Interim dividend No. 92 of 375 cents per share was declared In December 1981 and ia 
payable in January T9SZ. 


. Capital expenditure 

Loans received .............. 


;-' V / , 


Loan repayments 




Capital expenditure 

Outstanding commitments at 31 December 1981 ate estimated at R26899000 
130 September 1 981 : R6 958 000). 


Financial results 

Sates of antimony embentrataa less 

realisation charges 

Gold sales 

Sundry mining Income 


105400 

4387 

5646 

ROOO 


103000 

4327 

4719 

ROOD 


338950 


Development 
Advanced ............ 


6342 23 764 


• i.t ' 


Eastern Transvaal 
Consolidated Mines, Ltd. 

Issued capiial 4316 678 shares of 50 cents each 


Sampling results; 

"ET and “A" reefs 
Sampled ............ 

Channel width ........ 

Channel value ........ 


• •• t- - Vi. » ’ 

t'jt.- j rv' V - .'* ‘ 'ft- ‘ 


m 

cm 

8^ 

entire 




Basal rear 
Sampled . 


Working costs 


Working profit ....... 

Non-mSiing income ... 


Prospecting wpendHura and 
snores adjustment ........ 


Profit befo re t a x a tio n ••••••• 

Taxation 


profit after taxation .v:.. ......... 


Capital expenditurs 

Dhridand 


Operating results 
Gold 

Ora milted .......... 

Gold recovered ...... 

Yield 

Revenue 

I Costs 

Profit. .....-• 

Revenue ........... 

Costs 

Profit. ...... ....... 


Financial results 


Non-mining income . 


finwieM 

The revenue from tha rale of antimony concentrated brought into account each 
quaner Is based on actual shipments made, which can vary considerably from quarter 
to quarter. 


Prospectin g expenditure. 


Dividend 

Pnai dividend No. 70 of 80 cert* per share ww tfnctersd December 1981 and Is 
payable fo January 1982. 


Profit ato ‘ rati o n 


Capital expenditure 

Outstoncfinfl commitments « 31 December 1881 « «®TWted at R347000* 
(30 Saptamber 1081: R47 000). 


Capital expendhure ..... 

Dividends 



Quarter 

Quarter 

Six months 


ended 

ended 

ended 


31 Dec.. 

30 Sept. 

31 Dec. 


1981 

1981 

1981 


78240 

77260 

155500 


53122 

679A5 

1 160.67 


7.4 

73 

7.5 

R': milled 

9594 

95.95 

95.95 

fc: milted 

4156 

41.18 

4126 

Rimiili»d 

5428 

54.79 

54.59 

... ROOO 

7507 

7413 

14 920 

...ROOO 

3252 

3180 

6432 

ROOO 

4255 

4233 

8488 


ROOO 

ROOO 

ROOO 



4255 

4233 

8488 


389 

ior 

490 


4644 

4334 

8978 


203 

205 

408 


4441 

4129 

8570 


2186 

2 212 

4398 


2255 

1817 

4172 


511 

197 

708 


26SO 

— 

2590 


3101 • 

197 

3298 


Channel width 

Channel value > 


Etsburg reefs 
Sampled . . ... 
Channel width , 
ChannefvaJua . 




Total— all reefs 
Sampled .. ........... 

Channel width ......... 

Channel value 




cm 

flA 

....envoi 


938 3270 

« 43 

183 153 

785 666 




Taxation 

No taxation or State’s share of profit was payable 




i the Company has assessed 


Capital expenditure 

Outstsntfing commltmenta at 31 December 1981 are estimated at R2590300Q 
(30 Saptamber 1981 : R23 81 1 000). 




Shaft sirgdng 

The praOmlnaTy drMng of No. 1C Subenrtical shaft was osmjtietad to a depth of 36 A 
metres beta* 52 level and tha tfnft was concrete Brad to a depth of 105 metres. 


Magazine screwdriver 


■each case have been signed cm their behalf by two of the cflrectws, 
31 December 1981. 


FORFAK of Ramsey, Hants, has infireducad tida 'rii - 

power assisted “Hoto-Hex^ ma gaatoo ^ w ry wi tr l ver - A raw 
of screws with comhemxGc Pesifiriv m 

in belts from the company In staw from 3^/12 z 
to 45mm length. Penetration of tha, screw 
adjusted np t» plus or ainas 5mm. Morn bm Forpek, 
Io*istrtsI Estate, Gzsatttzldgs Road, 






/f 


CANW 'Busies Sysfetn^ will 
eventually blow bubbles of ink 
to produce photocopies. It says 
it. has develtqied a yarlptfonl on 
convvirtiarial ink .-dot . printing 
which is Ukdy tq be used In 

future plain paper copiers- _■ 

According to; the company, 
early testssh o Wth atth a syston 
can print up to 120 times faster 
than International Standard ink 
jet printere. wfflfaariltupairing 
print quality. 

The printer generates bubbles 
to 'ejert ink'throi^h. a serira.of 
densely-: packed ink - -nozzles — 
eight- hbazles 'per mm.- . . 

The ■ bubble jet "came' to Iha 
ncr tito'of Can on. researches by 
■ aedttent ^vAen: a.- soldering- iron 
-jell against a: syringe-; The- heat 
facmed a . bubble wMch forced, 
liquid • through'-, the triage 
hozde/- ’ ‘ •: *’ 


machlnliig, industrial : robots, 
automated inspection ^and auto- 
matic warehousing materials 
- handling. 

. -. On . February' 18 and fi 
fijgineerfe. Digest is holding a 
“ Summit on Antomated Manu- 
feettiring at iffie Mount Royai 
Hotel, London. ' ; 

There wd' be foui' 'main ses- 
sions covering -concepts*. Com- 
puters In production, computer 
aided, engineering and the auto- 
matic factory. ; - " 

There' is a. good balance of 
speakers from the Ttniverslties, 
the research associations and 
from Industry. Engineer’s Digest 
is o d 01-358 975L 




m 

m 




| A TORMi8iI)EEITO ine- 
servative 4 with lqw . toaacily 
characteristics, and designed for 
use in. water based paints,, dyes, 
inks,' adhesive and .glues - has 
hAwr - anno unced -by. Sterling' 

Industrial, *•'• CbVjmlttwhr . Shef- 
field <0742‘467I7i>. • : 
ri .Tfc A company says Ihat. Par- 
metol K40 does not infcorporate 
phenols or - heavy metal sab- 
stances, and has a .wide .bacteri- 
cidal j4md fttngici^^ 
its 1 main active > ingredient 
being a heterocyclic sulphur/ 
hydrogen compound. 


■i ' 


3 t- 

■3-'- - 


.$5^- a. 


Uangua 


^ border 




4.;..'' . c '-o 


J C r HAN\ EL 


r- 


■ - 

■■l.a 


V - ** -V : . 


% Vpi . . e - 


- • . 
v. . 

S.i : R - 

#^ ! Vr 

3 ai-1 - \- 




V., 




13 





ARDENS TODAY 


FT COMMERCIAL LAW REPORTS 


No mineral rights in oil and gas under seabed 


EARL OF LONSDALE v HM ATTORNEY-GENERAL. 
Chancery Division: Mr Justice Slade: January 15 19S2 


nothing 




•v .'£J5 ainfor , Schools, Colleges. 

' Yol aa cL Me. 10.15 For- 
Ss'ssoli -ralleges, 12L30 pin News 
J. ~ar • Non. 100 Pebble 1 Mill 

■ aVDbe. L45 Peatman Pat 2-01 
F at 'Shook, ~ : Colleges. • 3.05 
Sqngs^-f' Praise- from Hereford. 
tL40 Ply it Safe! . 3.53 Regional 
News' or England (except Lon- 
dob). 155 Play Se&oqL 4.20 
Secre Squirrel. - 425 Jackanory.- 
4.40 " Take , Bart ' '5M . John, 
Brava's Newswind.' * 5d0 IThe; 
sior of "the Treasure ' Seefcersr ; 

M ^:NWrttA-L'.Lv'.‘ 

■ ' ' . sO^News.-..^ ; 'V :v;' 

. Att' ^Natipn^dfi '(LondbnXa™? 

. sontn3ttt). : : ; 

..... +25 V. .-,r. !* 

* . 'fJSS ^Roii iJsKarris* . Cartoon 

• TtBUO‘ (London. end;-the , 

.o Ai. -; - . 

t. ;7.2* The -Wednesday Jlhn: - 
-; - J “Thof ShBdt .Nor Kfli,” 

• ■•'=' stoiht^Lee Grant • . -. -. 

. 9JW News. : V. 

9.S Sportnight including 
-Tenps i (Volvo -.- 'Grand 
V ito Masters Firm! from 
•. New forfc) and World Cup 
Sail? (Ladies' Downhill . 

V. from' -’-- Bad Gastein, . 

;-; : Ansriay. ' . " 

10.30 Pari|nsbn 1 arid . his mid-.. 


1L28 N^s Headlines. 

1130. GJatfs Knight *nd tiro 

••• 


TELEVISION 


Chris Dunkley : Tonight’s Choice 

Yet another strong night for BBC-2 and Radio 4. The repeat 
of Life On Earth reaches its penultimate episode, ** Life In The 
Trees," which features the apes and that celebrated sequence in 
which David Attenborough ends up grinning delightedly at the 
.camera froin underneath a friendly gorilla in the wild. 

■ ' A new series of Chronicle opens with Roy -Davies’ pro- 
gramme, “The. -Man Behind The Made.” Archeology’s greatest 
mystery is how the profession itself ever acquired an image of 
.dusty academicism, . axeept by simple association with the sand 
from , which so many treasures are dug. The more one hears 
abbot archaeologists, .the clearer it becomes that the calling 
attracts an extraordinary number of crooks, charlatans and liars. 
Tonight's programme promises hair-raising revelations about one 
of the- fatheirs. of modern archaeology, Heinrich Schliemann, the 
man credited with sbminal discoveries at Troy and Mycenae. 

' HCAjSJBC - sees, the officers . of lie.. 4077th obliged to become 
saloon-keepers. In Episode 2 of The Ben, plans are laid for the 
Installation of the abbey's new ben. . 


BBC 2 


1030 am Gharbar. ' 

11.00 Play School. 

2230-130 pm Open University. 
335 Landscapes of England. - 
.430 Images of War. 

.440 ..Tigris. 

530 They’re Playing My Tune. 
■fS.40 Undersea Kingdom 
630 Life on Earth. 


AU IRA Regions as London 
. except a the following times: •' 

■y ■••-i'VwANSUA"- ••••/• 

• 120 pnr^ngliH Nowa. 2* Trap par 
John:- sjr Happy Days. 0.00 About 
Anglia. . ,.T>4D am The. Big Question. 

-, V ./-BORDER .V . 

1 m.' pn Border News.. 2.45 The 
.Ante .-'Roc*' 5.16 . Out -of Town. 6.00 
Lookusurr 1 Wednesday. }ZA 0 am. 

Hews Sifiinwy- ' . ' 

:• ■ 'V 

• %M -jja> Central News.' 2.® Hagan. - 
5.TB DHTWt Strokea. 8.Q0 Crowes^ 
635 Clrfraf News. 1Z4Ci*m -Portrait 
"Of 'a . trend (Franhle. - ValH .and the, 
Four S«on«) . 

: '£j ? CHANNEL 

r2tf '« Channel- Lunch time j ftews. 
Wbw'aSn Whore and Weather. 2.® 
Twppeftohn. 63d Crossroads. 6-00 


./i. vjfiSimnopbonic . broadcast . 

; fr Medi an Wav* only ; - 

Sradio--'’i :tiV. 

- Aa Radio' 2-' 7.00 Mike.; 

-riSvBJJO Simon Bates. 11-30 Dave 
Aa»rMns.- . 230 pm Paul -Burnett. 

Safer** Wria*. SA0' pe »t. p ®r ! !': 

Wel'o t MallbaQ. 8.0p Oawd 

10.00-12.00 John Peel (SJ- 

• ^ -RADIO 2 . . • ’ 

3D0 am’ Steva Jon is ($)- 3 7 - 30 
ogahYS). TOOO Jrnimy Young 
12.00 ' Gloria HunnHonL (S). 
Ed Slswart (SJ. *A0 .O#vld 
(S). 5.« Newa. Sport. 
Jdjfc-Dund (SI. 8.00 Alan DolL with 
Dtf* Band Days- 8 JO The King s 
CoKtion IS). 9.00 The -Folk E n “ r- . 
-ufaa fSY. 9.30 Sounds ol tho Sun 
9.55 ' Sports Desk':.' WOO- Rel^a. 

g^- M? Gu6!rt nays 


'Channel Report. “ 6 JO Bailey's Bird. 
10.Z8 Channel Lata News. 12-40 am 
- Epilogue followed by News and Weather 
.In ' French. • 


- GRAMPIAN 

•• 0.25 am First Thing. 130 pm North 
News. 2.® Trapper John. 5.15 
Private Benjamin. 6.00 North Tonight. 
12.40 am North Headlines. 


GRAWADA 

}. . 130 pm Grana da. Reports: 2.00 Live 
Mfflm Two; Z® The Ante Room. 5.15 
Private'' ; Benjamin. 6.00 Granada 
Raporrs. '635. Thin la Yopr- Right.. 

y,'-’ HTV' ’ 

. . 1.20 pm- HTV News. . 2.45 Bracken. 
4.45 Sport Billy. - 5,10 Aak Oacarl 
530 Croaipads. 6.00 HTV News. -630 
Superstar Profile.. 10.28 HTV. News. 

HTV CYMRU/WAIES— As HTV WEST 
except: 12.00-12.10 pnk Fla labalam. 4.15 


635 The Water Margin. 
7.40 News Summary. 
^7.45 The Happy Bri nce.' 

. 8.10 Chnmicle. . 

3500 M*A*S*H. • 

935 The BelL 
1030 Grapevine. 
1030-1140 News night 


Y Rheilfiordd Gudd. 4.45 Our Incredible 
World. 5.10-530 Dick Tacy. . 6.00 Y 
□ydd. 6.15-630 Report. Wales. 


SCOTTISH 

130 pm News and Road end Weather. 
130 A Full Lila— John Osborne. 245 
Love Boat. 5.15. Pet Subject. 530 
Crossroads. 6.60 Scotland Today. 6.20 
Action Line. 630 Weir's Way. 12^0 
am Lata Call. . 


TSW 

130 pm TSW News Headlines-' 2.45 
Trapper John. ' 5.15 Gus HoheybutTs 
Birthdays. 530 Crossroads. 6.00 
Today South West. 630 Scans. South 
West/ A Day in the Lila. 1032 TSW 
Lata Maws. "1240 am Postscript. 1245 
South West Weather. 


1.20 pm TVS -News. 2.45 The Ana 
Room. S.15 Watch This Space . . . 


RADIO 


Glofii-HunnHord.'. .'ITAO Brian titehhew 
with Round- Midnight. 130 am Truckers' 
-Hoar (S). '- 330-530. You'. and the 
Night and the Music- fS). 

. radio at."." . > 

- 6.55 am Weather.. TOO. News. 7.05 
Your Midweek Choice fS). 830, News. 
8.05 Your' Midweek Choicer (contlnuBd) 
(S). - 9-00 News. 9.05 This Week’s 
Composer: Haydn' (S). .' 1030. Brahma, 
piano , recital (S). 11-00 Eneaco: Octet 
for strings. Op.. 7 fS): - 11.45 Rupert 
Foundation Conductors* Awards (S). 

1.00 pm N9ws. 1.05 Concert Hall (S). 

2.00 -Music Weekly (S). 2.50 Jarzman 
Talking: Rad Norvo (SJ. .4.00 Choral 
-EvensonET (S). 4.55 News. 5.00 Mstely 


tor- Pleasure '(S). 730 Chopin. . piano 
recital (SJ.. 730 Rupert Fotmdelion 

Conductors' Awards: The FtnaJ from • 
the Fairfield Halls. - Croydon. Part 1: 
Mozart (conducted by the Bna lists > (S). 
8:30 Six Continents.- 8.50 Ruperr 
Foundation Conductocs' Awards: Part 
2: Sibelius (conducted by Ole Schmidt] 
followed by result of die Awards (S>. 
9.40 Music in our Time (SJ. 1130 
News. 11.05-11.15 The Dream af'Gunnat 
by_ Nielson (SJ. 

RADIO 4 

6.00 am News Briefing. 6.10 rzrnrinc 
Today. 635 Shipping Forecast. €30 
Today. 838 Yesterday :n Perfumer l 
. 9.00 NewB. 9.05 Midweek: Henry 


LONDON 


9-30 am Schools Programmes. 
12.00 The Munch Bunch. ' 12.10 
pm Rainbow. 1230 Play it Again. 
LOO News, plus FT Index. 130 
Thames News with Robin 
Houston. L30 Take the High 
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sented by Mary Parkinson and 
Kay Avila. . 2.45 The Six Mil- 
lion Dollar Man. 3.45 About 
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MadabouL 4.45 Arthur of the 
Britons. 5.15 Mr Merlin. 

5.45 News. 

6.00 Thames News with 
Andrew Gardner and Rita 
Carter. 

635 Help! with Viv Taylor 
Gee. 

635 Crossroads. 

7.00 This is Your Life. 

7.30 Coronation Street. 

8.00 London Night Out: Tom 
■ O'Connor is joined by 

Gleo Laine and John 
Dankworth, the Hollies, 
Roy Walker and the Geoff 
Richer Dancers. 

9.00 Minder starring Dennis 
Waterman and George 
Cole. 

10-00 News. 

1030 “Go Tell the Spartans." 
starring Burt Lancaster, 
Craig Wasson and 
Jonathan Goldsmith. 

12.40 am Close: Sit Up and 
Listen with Jack Jones, 
f Indicates programme 
in black and white 


5.30 Coest io Coast. 6.00 Coast to 
Coast (continued). 1230 am Company. 

TYNE TEES 

9. 2D am The Good Word. 935 North 
East News. 130 pm North East News. 
135 Where the Jobs Are. 2.45 The 
Love Boet- S.15 Mode and Mindy. 
630 North East News. 6.02 Crossroads. 
6.25 Northern Ufa. 1030 North East 
News. 1230 am Travailing. 

ULSTER 

130 pm Lunchtime. 2.45 The New 
Avengers. 4.13 Ulster News. 5.15 
Hear Here. 530 Good Evening Ulster. 
6.00 Gcod Evening Ulster. 1039 Ulster 
Weather. 1230 am Bedtime. 


YORKSHIRE 

' 130 pm. Calendar News. 235 Trapper 
Jnhn. • 5.15 Private Benjamin. 6.00 

Calendar (Emley Moor and B.elmont 
editions). 


Kelly Goes West. 10-00 News. 1032 
Gardeners’ Question Tune. 10.30 Daily 
Service. 10.45 Morning Story. 11.00 
News. 1135 Baker's Dozen. 12.00 

News. 12.02 pm You and Yours. 1237 
Around the World in 25 Years with 
Johnny Morris (S). 12.55 Weather, 

programme news. 1.00 The World 
at One. 1.40 The Archers. 135 Ship, 
ping Foreeesi. - 230 News. 2.02 

Women’s Hour. 3.00 News. 3.02 

Afternoon Theatre (5). 3.50 Report 

South West. 4.00 Elisabeth Soderetrom 
(SI. 4.45 Story Time. 5.00 PM: 
News Magazine. 5.50 Shipping Fore- 
cast. 5.55 Weather, programme news. 

6.00 News. 6,30 My Word! (S). 7.00 
News. 7.20 Checkpoint. 735 Origins: 
In Seerch of “ Tristan." 8.15 A Cornish 
Evening. 9.45 File on 4. 930 Kaleido- 
scope. 9.S9 Weather. 10.00 The World 
Toniqfct. 1035 Quote . . . Unouote (S). 

11.00 A Book at Bedtime. 11-15 The 
rinan=ini World Tonight. 1130 Today 
«• Parliament. 12.00 News. 


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THE PHRASE "mines and 
mine rals ” in a conveyance 
shall be interpreted In the 
context of the conveyance and 
In the same' sense as it would 
have been understood when 
the conveyance was made: 
and where it is clear from 
such interpretation that the 
phrase was intended to 
Include only solid substances 
capable of being mined, it 
shall not be construed as 
including oil and natural gas. 

Mr justice Slade so held when 
dismissing an action by the 
plaintiff, the seventb Earl of 
Lonsdale, against the Crown, by 
which he sought a declaration 
that he owned oil and natural 
gas under part of the seabed off 
the Cumbrian coast. 

+ * * * 

HIS LORDSHIP said that the 
Crown, by a conveyance of 1880, 
granted to the ' plaintiff’s pre- 
decessors in title its interest in 
specified mineral substances 
within or under certain tracts of 
land forming part of the seabed 
adjacent to the Cumbrian coast, 
and “all - other mines and 
minerals (if any) down to the 
bottom of the coai measures in 
and under the same tracts of 
land.” 

In 1969 the Crown purported 
to grant an oil company a licence 
to search and bore for oil and 
natural gas in a tract of the 
Irish Sea and adjoining land 
whicb fell within the relevant 
area. That licence had since 
-been surrendered, but its grant 
gave -rise to the present pro- 
ceedings. 

The plaintiff contended that 
u mines and minerals ” in the 
conveyance included oil and 
natural gas. He sought a declara- 
tion that the ownership of any 
oil and natural gas in or under 
the relevant areas, down to the 
bottom of the coal measures, 
was vested in him as tenant for 
life. 

The Crown contended that oil 
and natural gas were a fluid and 
a gas respectively which flowed 
or permeated and were not 
mined. In 1880, at the time of 
the conveyance, neither would 
have been regarded as a mineral 
substance, and the conveyance, 
on its true construction, did not 
convey an interest in oil or 
natural gas. 

Three general principles of 
construction were relevant The 
first was that, in construing any 
commercial document a court 
must do its best to place itself 
in thought in the same factual 
background as the parties were 
at the time when they entered 
into the transaction- Thus, the 
relevant words of the convey- 


ance should be construed in the 
way in which commercial men 
would have interpreted them in 
1880 in relation to the present 
kind of commerical transaction. 

The second principle was that, 
contrary to the ordinary rule 
applicable to grants by a subject, 
grants by the Crown usually fell 
to. be construed in the manner 
most favourable to th'e grantor. 

The third principle was that if 
a particular word employed in a 
written instrument bore an 
** ordinary sense,” the burden of 
displacing that ordinary sense 
would fall on any person who 
sought to assert that in a particu- 
lar context the word did not bear 
such a meaning. 

The evidence clearly indicated 
that, in 1880, the potential com- 
mercial importance and value of 
rights to extract oil and natural 
gas in England or in the 
adjacent seabed, were not nearly 
so fully appreciated as they were 
today. 

Nevertheless, the mere fact 
that the parties to the con- 
veyance might not have 
specificaly directed their minds 
to oil and natural gas would not 
necessarily have prevented them 
from passing to the grantees. If 
the grant of “all other mines 
and minerals ” on its true con- 
struction included oil and 
natural gas. those items would 
have passed even though the 
parties might not have thought 
. about them at all. . 

After investigating some of 
the many conflicting authorities 
relating to grants or reservations 
of mines and minerals, his Lord- 
ship concluded that “ mines and 
minerals” was not a definite 
term, but was capable of bear- 
ing a wide variety of meanings. 
Unless the meaning was clear 
from the instrument itself, the 
first duty of the court was to 
ascertain what the phrase meant 
in the vernacular of the mining 
world, the commercial world and 
landowners, at the time of the 
grant 

The evidence as to vernacular 
usage was quite inconclusive and 
the court had to fall hack on the 
wording of the documents them-, 
selves, read in the light of the 
surrounding circumstances with 
the aid of dictionary definitions. 

Five crucial points emerged. 

1 — ■“ Mines and minerals ” in 
the context of the. conveyance 
was manifestly not intended to 
include substances whicb could 
only be worked by drilling or 
boring. It was intended to 
include only substances which 
could be won by means of 
underground works beginning on 
the adjacent lands of the 
grantee. 

2 — Oil and natural gas were 
not and never had been capable 


of being .extracted from the 
earth on a commercial basis by 
means of underground mining, 
■whether by tunnels or excava- 
tion. The available methods of 
extraction were either by drill- 
ing, or, in the case of oil, by a 
abaft dug from the surface. 

3 — In the conveyance, “other 
mines • and minerals ” closely 
followed a reference to “coal, 
cylm, ironstone and fire- 
clay,” all of which were solid 
substances capable of being won 
by means of underground works 
beginning on the adjacent lands 
of the grantee followed by 
digging. Tbe proper inference 
seemed to be that “minerals” 
was used in the sense of solid 
substances belonging to that 
category. 

4 — The Crown, in the convey- 
ance, reserved “walls or 
barriers of the said mines, 
minerals . . . on every vein seam 
or bed thereof." The terms 
“veins” and “seams”, did not 
seem appropriate to fugacious 
. substances . such as gas and 
petroleum. It was reasonably 
plain that the Crown contem- 
plated that the barriers would 
be notional barriers in solid as 
opposed to gaseous or liquid 
substances. 

5 — It couUd be inferred from 
tbe evidence that tbe parties, in 
1880, never intended that rights 
to extract oil and natural gas 
should pass to the grantee. At 


RACING 

BY DOMINIC WIGAN 


AFTER ANOTHER interruption 
of the National Hunt pro- 
gramme, occasioned by yester- 
day’s abandonment of the Sedge- 
field and Worcester meetings, 
raring resumes at Folkestone 
today. 

The ground will be as hold- 
ing as an seen this winter on 
the Kent- trade. For this reason 
backers will do well to ignore 
all but proven mudlarks. In 
the afternoon’s principal event, 
the Hurst Green Handicap 
Chase, few if any contenders 
can be ruled out because of the 
state of the ground. 

In one or two other events, 
however, there are on that 
score question-marks against 
several respectable performers. 

A chaser sure to cope with 
the under-foot conditions better 
than most is the nine-year-old 
Fabulous 


that date neither category of 
rights would have been regarded 
as having any use or commercial 
.value by 'persons dealing with 
the sale of minerals in the 
relevant area of Cumberland, 
and indeed, the existence of gas 
would have been regarded as a 
dangerous nuisance.. * . 

Those five points - made it 
reasonably plain that in the con- 
text of the I860 conveyance, 
“mines and minerals” was not 
intended to include anything 
except solid substances capable 
of being dug out of the earth by 
means of. a mine, and in 
particular, was not intended- to 
include oil and natural gasl 

Alternatively, the five points, 
at the very least, established 
that “ mines and minerals ’’ had 
no definite meaning, in which 
case the words must, be . con- 
strued in the' manxier most 
-favourable to the grantor in 
accordance with the principle 
applicable to grants by the 
Crown. 

Judgment for the Crown,. 

For the plaintiff: Donald 

Rattee QC and Roger Home 
(Gregory, Rowcliffe & Co., 
agents for Dickinson, Dees, New- 
castle upon Tyne). 

For die Crown:- Leonard Brom- 
ley QC and John Mummery 
(Treasury Solicitor). 

By Rachel Davies 

Barrister 

A useful winner over hurdles 
in the 1979-80 campaign, this 
former inmate of Padge Berry’s 
County Wexford stable ran ex- 
tremely well for a 66-1 chance 
until lack of fitness told in 
Cheltenham’s Colt Car Platinum 
Novices Chase won by Realt Na 
Nona on New Year's Eve. 

Not seen out since that effort 
— his first of the season — 
Fabulous may well prove cap- 
able of springing a surprise in 
tbe Brede Novices Chase. 

Tragus did the trick for David 
Morley and Bob Davies, in last 
year’s Hurst Green Chase. They 
must be hopeful that Falkland 
Palace can provide the answer 
this time. The 2J-lengths Hunt- 
ingdon conqueror of Happy 
Hector, this time a year ago, 
Falkland Palace ran well before 
retiring in a two-mile event at 
Warwick in November. 

FOLKESTONE 

1.15 — Mons Beau* 

2.15 — Indiana Dare 

2.45— Falkland Palace** 

3.15 — Fabulous*"* 


2 indispensable works of reference for those involved in 
the International Banking and Finance Community. 

Who is Where 
in World Banking 
1981-82 


v j v 

WWKLDBAVK 1 ^ 




Who Own What 
in World Banking 
1981-82 

A guide to the subsidiary and affiliated interests of 
the world’s major banks including multinational 
and consortium banks. This new, updated 1 1th 
edition covers 380 banks; these are not 
necessarily the ones with the largest balance . 
sheets but those who play an active international 
role and are well represented abroad. 

Each of the 380 entries includes: 

• Name and address. 

• Condensed balance sheets for 1 977, 78, 79 and 
80 in US dollars. 

• Participants, member banks and both domestic 
and international subsidiaries and affiliates 
together with percentage of ownership. 

• Foreign offices. 

• Principal areas of business. 

Also induded isan extensive cross-referenced 
index. 


This companion volume to Who Owns What in 
World Banking 1981 -82 is a guide to the overseas 
representation of the world's major international 
banks in ovei' 50 countries. 

Name, address, telephone and telex number is 
given for each bank, together with a code 
indicating status, i.e. branch office, representative 
office, subsidiary, multinational consortium, 
agency, delegate, offshore banking unitor affiliate. 

Within each country the banks are listed according 
to the financial centre in which they are located with 
the most important centre first in any one country. 

All the major banking regions of the world are 
covered: 

• South America • Australasia • Caribbean 

• Middle East • West Europe • North America 

• Africa • Far East • Central America 

• Eastern Europe. 

These tWo books published in December 1 981 are 
available individually or as a set at a special price - 
please see order form below. 

THE FINANCIAL TIMES 
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KnandaH^Tiines Wednesday Jamiaiy ' 2Q- 1982 : " 


the management page 


EDITED BY CHRISTOPHER LORENZ 


Why a buyout is just the ticket 

A Plessey subsidiary is bre aking away to produce an instant billing machine. Ian Rodger reports 


FOR THE past 18 months, 
residents in the Greenock area 
of Scotland have been receiving 
their electricity bills within 
seconds of having the meter 
read. 

That may net be very exert- 
ing foe. the resident but it offers 
considerable cost savings to the 
South of Scotland Electricity 
Board, plus a significant 
potential improvement In -cash 
flow. 

The machine that performs 
this useful service was invented 
by Tony Goodfellow, a former 
■ computer salesman with I CL, 
who in 1976 took his idea to 
_ Plessey. 4&>e electronics group, 
for deyeiopment. 

*Plessey has supported the pro- 
ject ever since, backed up by a 
£345,000 -advance from the 
Electricity Council in 1978. By 
last year it had become more 
Ukbly-4bat ^e -portable biHjag- 
machine iPBM) had a com- 
mercial future when the SSEB 
placed an order for 250, of 
winch eight axe already in 
service. 


Business Systems, ' on the 
Unlisted Securities Market, later 
this month. . 

“The project was just not 
quite in line with our view of 
oar business,’* says Derek Mays, 
assistant finance director of 
Plessey. “it is a good little 
product and Mr Goodfellow gas 

pot a tremendous amount of 
effort into it-*’ 1 


Marginal 


But such is ‘ the rigour of 
Plessey’s recent strategic review 
of priorities that it has decided 
to accept a £l,15m bid from 
Goodfellow and his associates to 
buy back the rights to the bill- 
ing machine system. And they 
in. .turn are planning to float 
their company. Immediate 


Plessey has. been working 
hard in the past two years at 
pruning its product ■ line and 
getting rid of loss-making 
operations, such as Garrardfi. 
Mays agrees that bringing the 
billing machine into production 
would not require a lot of capi- 
tal but Plessey 'was also 
concerned about allocating its 
scarce resources of management 
and- teehnolo^cai- -sfctHs - - rar 
soraething that was marginal in 
its overall business. 

“At some point.” says Mays, 
“ you have to make a decision.” 
He says the £1.15m proceeds 
from the sale will only cower 
PlesseyV incremental spending 
on the project. 

Goodfellow says he suspected 
that Plessey's heart wasn't in it. 
“They do large projects. They 
are not' interested' in selling 
standard products. In 1978. 
they were not interested in ' 


putting' more money Into it and 
so the Electricity Council came 
along at the - instigation of the 
SSEB.” 

Sensing Plessey's continued 
lads of interest last year. Good- 
fellow approached two of the 
group’s directors with a view to 
buying baric the project. By 
September, he bad formal ap- 
proval and the deal was finafi? 
- completed this week. 

Over the next six months, 
production of the PBBf will be 
moved from Plessey’s factory at 
Towcester to Milton Keynes. Of 
the 39 people working on the 
project, 35 will be transferred. 
Immediate Business Systems 
expects to take on another 20 
staff later in the year and raise 
production to about 65 machines 
per month. 

The ultimate potential of the 
public utility market in the UK 
is_believed to be. .about 3.600 
units and in the U.S., where a 
-sales operation is being set up. 
20,000. But Goodfellow sees 
numerous other likely applica- 
tions of the machine, such as 
in the issuing of parking tickets, 
invoicing of wholesale deliveries 
and stock control. 

Goodfellow developed the idea 
for the billing machine in the 
early 1970s before the tech- 
nology. for, it was available. “I 
was selling. XCL computers to 
utilities and It struck me that 
they were going about their bil- 


BOARDROOM BALLADS 


RAGS TO TATERS 


When James D. Flaherty O'Rourke 
Came from Dublin to New York. 

And peddled round his hot potatoes. 
Few financial commentators 
Forecast he was on the brink 
of ' World-Wide Rot Potatoes Inc , 
Founding his global enterprise 
on Chirpy Chips and Handy Fries — - 
But such ore the bizarre gestations. 

Of multinational corporations. 

★ 

And barring made the humble spud 
Synonymous with motherhood. 

And “Chips with Everything” the toast 


As were tobacco farms in Cuba, 

On i he pucr-anreed assumption 
Of escalating world consumption; 
Till alt the leading indicators 
" Were based on futures in potatoes, 
With James the undisputed King 
Of the carbohydrate ring: . 

White Opec in distress retHewed 
The. synthesis of starch from crude. 


ling the wrong way. So I sat 
mid waited £ at the tech- 
nology." 

The main requirements were 
the microprocessor, essential for 
its small size and light weight 
and bubble memory, which pre- 
serves data even if the batteries 
on the portable unit fait Good- 
fellow also designed a highly 
compact printer . that would 
churn out bills that are read- 
able by optical character 
recognition equipment and a 
tiny paper cassette that would 
retain a back-up record of all 
meter readings and billings. 

In total, the IBS system con- 
sists of an office mini cwnputw 
that carries aid the relevant 
data on customer accounts plus 
any number of PBMs. 

• In a typical operational 
sequence, the local supervisor, 
prepares the meter neaden? 
rounds on the office computer a 
day in advance. In the evening 
the biffing machines, which 
have probably been out on. 
other rounds, are loaded with 
data for the next day’s rounds 
and their batteries recharged. 
The keyboard display on the 
machine guides the meter 
reader to addresses, reveals the 
name of the customer, the loca- 
tion of the meter and even 
warm if there is a dangerous 
dog on the premises. 

The reading is then made and 
entered into the FBM. If the 
reading ts implausabie, the 
machine wUl require aft to be 
checked. “The most common 
error m readings is in the most 
signs® cant digit. ** says John 
Lordlier, chief commercial 
officer of the SSEB. “ That is 
the figure for the ten thousands. 
So this machine reduces 
customer complaints.” 

Once the PBM is satisfied 


with a reading it prints out a 
biH reteb&og tiie relevant data 
m the bubble memory. If tite 
customer is not at home, st ynM 
produce a bill based on an 
estimated reading. 

At (the end of the day, tire 
FBM is plugged back into the 
officer computer, defivers -the 
day's results to it and loads up 
with a fresh round for the 
following day. 

IBS sells the billing machine 
for about £4,500 and the office 
computer to go with it for. 
£25,600. It also charges a licence 
fee for the use of its piro- 
gramsnes. The SSEB has been 
•using the system for bating 
some 35,000 of its l-5m con- 
sumers hut Lardner says it Is 
drfficait to isolate what cost 
savings arise. 


Batteries were vonly haSf daa» . 
Charged, they wtouid only half 
recharge, so the readers .were 
naming out of power after 120 
calls. Now we discharge the 
batteries completely- before re- 


Blister 


"The day we introduced the 
system, we had 50 bills paid by 
lunchtime but so far ft hasn't 
made much of a Mister on costs. 
However, we expect significant 
redactions in the nett 32 
months.. 


“ We beHew we will get a 
payback on the sy stem in less 
than two years, and every time 
the Post Office puts up Us mail- 
ing charges, it looks better." He 
warned, however, that fbesys- 
tem would only pay Us way if 
meter readers, who issue at 
least 150 hiWs a day, were fazriy 
efficient. 


He says the marfrlnc has gone 
through a number of refine- 
meats over the lB-mouth test 
period and now “has everything 
we want built into it" The 
most serious problem during 
the test occurred with the bat- 
tries. “We found that af the 


At least three other. manufac- 
turers— hone of them British— 
are making machines similar to 
the PBM but, a® in the case of 
IBS. deliveries are only just'" 
begi nning Goodfellow believes, 
his is- the qrost advanced- com- 
bining bubble memory, .printer . 
and the advantage of being, 
lightweight (5 kg). 

IBS raised £99,000 last 
October through a . private 
placing of shares to i nvestigate 
the possibility of buying back 
the business from Ptessey. Later 
this month, brokers Margetts- 
and Addenbrook, East Newton 
intend to raise another- £2.9m 
in a public placing of about 60 
per cent .of -the equity capital. 
After paying Plessey, the group 
intends to put £lm towards 
working capita in the UK said a 
further £500,000 towards U.S. 
working capital 

IBS is not making a profit 
-forecast bdtnt indicates that it 
win -make a trading bps in its. 
first year of operation, the 
directors believe the business ' 
will breaX even.if alt least 450 
PBMs and-40 office computers 
a year are sold. 

The groups strategy is to 
continue in improve the billing 
machine and to seek other appli- 
cations for the .system that sup- 
ports it. Of the staff of 35, IS 
have technical qualifications and 
nine spend all their time on 
research and development 

“ We’re a systems house 
really,” says Goodfehow. “ And 
afl we have af the moment is 
one application.” ... 




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Plessey five years ago Tony Qoodfdlow to\ow 
back the rights to the system . As : well as 
home market, he.plans a sizable push; ii 
UK customer,, the South of: Scotiand El 
is alreatfy using his madoimes to issue bf 
after .meters have been read 




Of every home from coast to coast. 
He felt that he should not denu 


He felt that he should not deny 
The culture of the Handy Fry 
To less sophisticated clients. 

Untutored in potato science; 

And ripe, on Wall Street’s best assessment, 
For World-Wide’s overseas investment. 

+c 

So soon the Hot Potatas logo 
Flew from Zanzibar to Togo. • 

With worldwide quality control . 

Bp satellite across the Pole ; 


Linking Chirpy Chip plantations 
And process plants in fifty nations 


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The Tigris, Nile and Orinoco 

Were switched from cotton, rice and cocoa 

To propagation of the tuber. 


- Wail Street analysts foretold 
A flight from copper, zinc and gold. 
And While House strategists demanded 
' - Return. to the Potato Standard. 
Friedman joined the advocators 
Of tight control of seed potatoes; 

. . And Downing Street teas quick to see 
MaiiipuJatioto of P3 
As the relevant equation 
For final conquest of inflation. 

★ 

' But James war keen to lease decisions 
On .politics to politicians. 

And moved with great reluctance to 
Subvert a government or two, 
Executives of Hot-Potatas, 

' Irrespective of their status 
And'the colour of their skills, 

. Daily.disai:ou; their sms. 

Renewing oaths to-Handy Fries, 

To multinational enterprise. 

And James O’Rourfee's financial plan 
For global brotherhood of . man. 

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&s ^'•Wednes^f January 20 1982 




;; '-'\—.- l ; w * -:■■■«•/ 


SURVEY 


Wednesday January 20, 1982 





television and a fourth channel, reshuffling of the TV companies and growth of local radio 
the many profound changes currently affecting the independent British broadcasting industry, 
which has yet to nieet the challenge of cable and direct satellite transmissions. 


CONTENTS 


®tmg - m 
be some- . 


nt-the DK 
iroadcasting . 
It opeartes-; 
a basis . 
govern-, 
ft firm grip. 
igoveramenS- 
Its checks and .* 
& ; ■ outside . 
lathis system 
ns so proud is 
_ $*'■■ mida at a 

revolubp- 

^ irai&indeitt television ' this 
year V* new 1 faces,, new com*' 
jaaxHffras about' to produce :ji ; 
new tfnmef and next year will 
qffer*. breakfast semce— per- 1 
hap^seaten. to the draw by the 
BBC }1 Sfewr- radio, station are 
qpe$g at. a considerable pace 
and- hovering in the wings, 

•-* cab^e^eviSioii systems promise 
•' -from their present 

ex^amental restrictions " and 
fima new.ann of commercially ■' 
’ op^edbroadcasting. Hean- 
w& v lhe lndijkry awaits the 

- ^- direct broadcasting satel- 



- VSjfl l'i'V system enters .this 

\ iW^ pftaso in its life. If not as . 

- .josperous as it would like to i 

prosperous ^ 
■ It feared St ani ght he. 

. ..drartisiBg' has remained rela* , 

- yeiy iraoyant and ITV is now ‘ 
udgmg towards the £600m ; 
tearbn-year \ v; ■ ^revenue', 
hresbold. Fears of - financed ■ ; 
a&aipiiy, ■ partiotiariy thanks-to-i 
*e Tieorganawtionr of - initial i 
financing: fori... the ■ Fourth • . 

.Chixmel, ^ye'reeecfedL .?•, ' t 
l^KBtbeJess" there is stffl a .c 


degree of fisaneiall nervousness 
around the industry, winch is 
why -the .-Ikeakfasfr show has 
been delayed: Indeed there are 
few" mbre entertaining words to 
he thrown info a media debate 
these days than - ‘“ breakfast 
television;" stimulating .as it 
does- an alignment over the. 
virtues and dangers, and, above 
-alL, ' the prospects - for the 
viability of such a service. 

• Next. 3 T?ar we -are goto® to 
see -the reality... rather than the 
-theory. Then Mr Peter 'Jay and 
3^ TOlouritg- team wEl pnfTV 


holders) would deny that the 
process is a deeply destructive 
one, even though at the end of 
it, the hope that a strengthened 
system, with improved ' pro- 
grammes at all levels, will 
emerge. 

“ Confidence is inevitably Jost 
— the confidence o£ programme- 
makers uncertain of their 
futures, the confidence of 
management- unwilling tn make 
long-term investments, the con- 
fidence of investors doubtful of 
a proper return on their stakes. 

“We have to try in the next 


Authority’s view." says Mr 
Shaw. “ That there is an urgent 
need to protect the present 
system at its present stage of 
development” 

For anyone with a long 
memory the sound of a senior 
1BA official talking about the 
need to preserve “ the present 
system” may have a piquant 
ring about it The Authority 
was after all, itself created in 
1954 (as the Independent Tele- 
vision Authority) precisely to 
upset the then BBC monopoly. 

The name change came a 


Not a painless revolution 


AM onto British screens. It is 
possible that the BBC will try 
to steal. * the Jay thunder 
between now and then— it has 
after all rather more money in 
Its pocket, now and will soon 
have a new director general — 
but it is on ITVs efforts in this 
area that attention will really 
fdcus. 

. . Meanwhile the immediate 
problem for ITV is the settling 
down of the new order. Review- 
ing, the' events of the past year 
or so, . and looking into the 
fixture, Kfr Colin 1 Shaw, the 
Independent ■ ' Broadcasting 
Authority's director of tele- 
vision. '■ admits tha t .the re- 
organisation of ITV has been .a 
disturbing process. 

, . f Nobo^.^ vriio . has lived 
through that experience (the 
choosing of The - , new franchise 


BY ARTHUR SANDLES 


few years to restore confidence. 
We need it not merely to secure 
quality on ITV, the first 
channel. We need it to sustain 
Channel . Four, the second 
channel, at the end of 1982 and 
in tire long run-up to the 
launching date before that We 
need it to provide a sound 
foundation for the breakfast 
time service winc h, under a 
16th company, ITV will launch 
in 1983.” 

Mr Shaw reckons that all that 
is quite enough without having 
new sources Of progr amming 
arriving, on the scene in the 
form of - cable or satellite 
systems. Both the IBA and the 
ITV companies themselves want 
the British government to take 
it easy as far as the introduction 
of new services are concerned. 

"The companies .share the 


decade ago, along with the first 
steps in the creation of the com- 
mercial local - radio system in 
the UK. Since those early days, 
including a faltering start 
followed by the "licence to print 
money “ period, the system has 
matured considerably. A ven- 
ture, which was once more 
identified with Sunday Night at 
the London Palladium than with 
cultural projects, now wears 
Brideshead Revisited as ft 
a creative crown. 

The argument now really 
centres around whether ITV has 
seen its golden years (TLR has 
yet to reach nationwide 
maturity) or whether the recent 
changes were really the start of- 
something new and wonderful. 

Whatever the thinking behind 
the process the real test is 
whether or not the new system 


actually works. The Authority, 
with backing from Government, 
has edged independent televi- 
sion into a greater regional 
identity — notably in the South 
and the Midlands — while ex- 
panding the truly local aspect 
of broadcasting through the 
ILR system. 

It is planning to fill the cul- 
tural gap with the Fourth 
Channel and the time gap with 
the much-argued breakfast ser- 
vice The theory of it all seems 
comn\endable; as for the prac- 
tice, we shall have to wait and 
see. 

Perhaps the saddest thing 
about the two-year birth pangs 
of ITV as it has been restruc- 
tured for the 1980s is that few 
people involved seem to have 
gained much joy from the 
experience. 

The IBA itself can hardly look 
back with delight on either the 
allocation process or the tidying 
np that came afterwards. And 
yet no one seems to have come 
up with the much sought, 
acceptable “other way.” 

Even with the promised boom 
in new television services Sir 
Brian Young, IBA director 
general, believes we may 
have to go through it all again. 

“I think the 1990s will still 
see two main UHF channels in 
the particular hands of a 
limited number of ITV com- 
panies, even though the fran- 
chises . will be less attractive 
when there is competition from 
cable and satel lite and re- 
engineered VHF. If the fran- 
chises are still desired and 
there are more contenders than 
there can be contract holders, 
then a process something like 
the 1980 franchise affair will 
have to happen again.” 

It is a daunting thought 



Companies: a rosy future 

11 

Radio: need for marketing 

V 

Advertising: boost in revenue 

II 

Regional TV: a stronger accent 

V 

Future: technical developments 

IV 

Breakfast TV: TV-AMt Peter Jay 

VI 

Independent producers: brighter prospects 

IV 

Debate over Welsh service 

VI 

1 

Channel Four great expectations 

VI 


Editorial production by Catherine Darby 


The empire strikes out 


IF THE past 18 months have 
demonstrated anything in 
British television it is the power 
that resides within the Indepen- 
dent Broadcasting Authority, 
and the willingness of that 
authority to flex its muscles. 

To the average viewer the 
success or failure of ITV in the 
1980s may seem to rest on the 
abilities of the programme com- 
panies; but it is the IBA which, 
now more than ever in the past, 
controls the fortunes of -the 
system. It has imposed its will' 
on everything from sharehold- 
ings to programme scheduling. 

It continues to do this in the 
name of protecting the public 
from the evils of raw commer- 
cialism. Policing by the 
authority is the price both radio 
and television companies pay 
for the privilege of bedding a 
monopoly of broadcasting 
advertising within the UK. It is, 
however, a price that some find 
irksome and one which some 
companies feel the IBA is now 
over-zealous in extracting. 

The role of the IBA, the pro- 
duct of another great British 
compromise between unfettered 
competition and tight state con- 
trol, is rather different from 
that of the BBC. While the 
Corporation controls all aspects 
of its activity and is answerable 


only to Government — and not 
eagerly answerable even there 
—the Authority acts more, as 
ground-based admiral whose 
fleet is highly independent and 
often capricious. The authority 
itself owns .the ITV/ILR trans- 
mitters and decides who the 
broadcasting companies will be. 

Via its selection process mid 
regular monitoring of pro- 
gramme' content and standards 
the IBA has a strong influence 


IBA 


on what is actually seen but, 
nnlike the BBC, it is not itself 
a programme maker. 

Most recently the aspect of 
the IBA’s activities which has 
been foremost in the financial 
columns has been its attitudes 
towards the structures of the 
companies under its charge. Its 
determination, come what may, 
to have the final say in who 
owns the companies which 
operate its franchises has meant 
that it normally insists on the 
voting stock ownership being 


retained hi a relatively few 
hands. 

It would take a great deal to 
sway the IBA away from this 
policy completely, although the 
recent moves with Television 
South West have indicated that 
it is willing to accept a full 
enfranchisement of shares 
under certain terms. 

Events at Westward Tele- 
vision and ACC seem to have 
convinced the members of the 
Authority that there are dis- 
advantages as well as advant- 
ages to absolute adherence to 
the original policy. 

Persistent enquirers to the 
Authority on this point are 
likely to be told that it con- 
tinues to wish to retain the 
power to prevent changes in 
the control of the parents. 
“This wish applies whether or 
not the parents’ activities are 
extensive outside television and 
its related fields." 

And, says the IBA, “the 
reason for this policy can be 
simply stated. 

“A television contract is an 
important public property, to 
be granted only on the basis of 
IBA consideration of competing 
applications (where there is 
more than one contending 

CONTINUED ON 
NEXT PAGE 


Channel Four is Ihe most 

exciting new advertising 
opportunity for 25 years. And in 
London, during the week, it’s 
marketed by Ihames .Televisiao. 

The low unit , cost will 
meanthat advertisers can easily 
take advantage of the massive 
London market through the 
powerful medium of television. 

It also allows advertising 
budgets tobe spread over longer 
periodsiatherthanrisking every- 
thing in a single burst. 

These are factors that will 
interest anyone who would 
like to promote his products or 
services on television. 

Our special sales division 
Thames Thsk Force is our 
Channel Four new business 
spearhead. Contact them on 
01-5812622. 

Thames Television will 
help you get the most out of 
CharmelFour - 






16 


INDEPENDENT BROADCASTING II 


Financial Times Wednesday Jauaiy 20 1982 g 


The allocation of contracts means that 14 regions are now serviced by 15 TV companies, soon to be joined by TV -AM and Channel Four 


IT V Areas - . - 

/ />(>/; ; Januorv -!9S 


in a rosy future 


It would not be an exaggeration 
to say that the last round of 
contract allocations in ITV 
left a nasty taste in the 
mouth of most of those 
involved — except, of course, 
those who found themselves 
brought from the tauchline 
into the main game. It 
provoked one of those quota- 
tions that hang around the 
neck of those who make them 
for years afterwards: “ There 
must be a better way.” said 

. incoming IBA chai rman Lord 
Thomson. 

Since that public 'sigh of con- 
cern, if not despair, the 
Authority seems to have 
returned to the view that anv 
better way is extremely diffi- 
cult to Sad. 

" One thing is certain.” Sir 
Brian Young, IBA director- 
general. told the Royal Tele- 
vision Society conference in 
Cambridge a few months ago, 
“whatever we do. we do riot 
please everyone, but will be 
accused either of being too 
cosy . with our friends and too 
unwilling to have a radical 
rethink, or of being too 
rashly swayed by unrealistic 
ideas and promises that can- 
not be fulfilled." 

The ITV company system is 
based on 15 contractors cur- 
rently offering services in 14 
areas. London has two fran- 
chise holders: Thames and 
London Weekend. Two addi- 


tional names will be joining 
the total soon: Channel Four, 
operating nationwide and on 
new frequences, and TV AM. 
also nationwide but using the 
frequencies of the present 
contractors for its mor ning 
service. 

Mainstream ITV-1 services into 
the 1980s will continue to be 
dominated by the “ network " 
stations. These five com- 
panies — Thames, LWT. 
Granada. Central and York- 
shire — have the task, and 
perhaps the burden, of provid- 
ing the bulk of networked 
material, this is programmes 
which are shown throughout 
the system. 

Quite apart from the behaviour 
of the advertising market, 
probably the biggest single 
impact on the fortunes of the 
companies over the nest few 
years is likely to be the 
performance of the Fourth 
Channel. In overall terras the 
portents are favourable. The 
general consensus is that the 
channel wi>H still be operating 
at a loss in 1983 but that this 
loss will be at an aceptable 
level. 

However, the channel is 
financed by subscriptions 
from tbe companies, which 
then have to recoup their 
expenditure by the sale of 
advertising space. . 

Obviously sales teams will vary 
in their ability to sell this 


time, and viewing levels will 
show considerable regional 
differences. Assuming Chan- 
nel Four to be nearer BBC-2 
in content than ITV-1 (an 
assumption which Mr Jeremy 
Isaacs might hotly dispute) it 
will do markedly better in 
London, the South and East 
Anglia than in the traditional 
ITV high-viewing areas of 
Yorkshire, the Borders and 
Northern Ireland. 

It is the local relationship 
between sales and costs which 
are of crucial significance to 
individual companies rather 
than the overall picture — no 
matter how rosy that picture 
may be. 

There was considerable market 
nervousness about the pros- 
pects for television companies 
until the IBA softened its 
approach to the financing of 
Channel Four. Subscriptions 
to the new operation were 
cut from a feared £124m 
(including £20m for the Welsh 
sendee) to £49m, less even 
than the £60m to £S0m that 
had been mooted by the IBA 
in 1979. 

The IBA may be fussy in the 
extreme when it mothers its 
charges but it Is also keen 
to ensure that no one gets 
into really deep financial 
trouble. Even if they do it 
will bend over backwards to 
help out Thus a company 
that is seen to be misbehaving 


(for example. Westward in 
19S0) will get short shrift hut 
where the fault lies outside 
the company's power of action 
it will step in. 

Tf economic circumstances 
swing against the system as a 
whole, or one company in 
particular, shareholders, even 
non-voting ones, can expect 
Lord Thomson and bis team 
to come to their help. No one 
is go mg to get a licence to 
print money anymore, but 
neither is anyone going to be 
driven to the wall if the IBA 
can help it. 

Television companies are in- 
creasingly hemmed in by the 
ISA's lack of enthusiasm for 
diversification. The Authority 
does not want to see manage- 
ment eyes taken off the main 
ball of making TV pro- 
grammes. 

While companies have argued 
that diversification can see a 
TV company through lean 
years, the IBA has argued 
that the reverse flow is also 
possible and not, in its view, 
necessarily desirable. TV 
companies are no longer ex- 
pected to say that they are in 
it for the money, they are 
instead asked to make a 
modest return in exchange 
for the privilege of broad- 
casting^ 

If you really want to see the 
air turn blue over the roof of 
the IBA's headquarters. 


opposite Harrods in London's 
Brompton Road, then suggest 
that its approach to the com- 
panies is amateurish and lack- 
ing in basic City skills. 

*' Obviously you can debate end- 
lessly (in the wake of the 
reshuffle) wheiher.we got the 
right balance, between giving 
the public the service it 
ought to have and enabling 
the ITV companies still to 
attract the investment they 
need.” Sir Brian Young told 
the Royal Television Society 
conference in Cambridge last 
autumn. “ But there was 
nothing slapdash or amateur 
about the attempt to get the 
right balance.” 

Sir Brian and his chairman. 
Lord Thomson, are normally 
the most sanguine of execu- 
tives. This particular aspect 
of criticism seems, however, 
to touch a raw nerve. Both 
can grow quite waspish on the 
subject. Lord Thomson now 
points out to critics who said 
that the corporate structures 
suggested by the Authority 
for Central and Yorkshire, in 
particular, could not work 
have been proved wrong. 

Says Sir Brian: 44 Members of 
the Authority do have finan- 
cial advice, they do include 
people with a range of finan- 
cial experience. If they 
decided on what seemed to 
them an improvement in 
ITV's service, even at some 


risk to profitability, then the 
decision was not taken . with- 
out a dear understanding of 
what was being done.” 

The task of the IBA and the 
companies over the next few 
years is to prove these sent i- 
meots to be accurate ones. 
They depend on factors other 
than the attitude of the IBA, 
of course. The continued 
buoyancy of advertising . is 
one of these and the ability 
to the industry to control its 
. costs is another. 

The settlement of the lengthy 
pre-Christmas 1980 dispute 
was a hugely expensive one 
for the companies and they 
are now desperately trying 
- to claw back their positions. 
Television, like other com- 
munications businesses, is 
being flooded with new tech- 
nology and, even in something 
as relatively new as TV, there 
is . considerable resistance to 
rethinking on methods and 
manning levels. 

Nonetheless the fortunes of ITV 
generally, and therefore of 
the companies involved In it, 
look rosier than in many 
other fields of consumer pro- 
duct activity. Even if the 
lights of the British economy 
continue to show but' dimly, 
the one that comes from the 
corner television set may be 
among the last to be hit 

A. S. 



b;'l; ; • T r;)| lIV’ !i: r'ii. 

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:h-W’est England :;j,; 
'(Television South iVesf, 


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New clients and a broader base boost television advertising revenu 


IT WAS Lord Thomson who 
said that possession of a UK 
commercial television franchise 
amounted to a licence to print 
money — a remark for which 
the moguls of ITV have never 
forgiven him. He was right 
of course— or nearly so — as a 
look at ITV’s recent revenue 
growth makes clear. 

In 197S, net advertising 
revenue of the ITV companies 
(after ironing out agency com- 
mission and advertisers' dis- 
counts) was £3 63m. The fal- 
lowing year it sagged a little, 
to £346.Sm— solely a result of 
the damaging technicians' 
strike in the autumn of that 
year. 

In 19S0. bolstered by a first- 
half flood of money carried 
over from tbe strike, ITV 


revenues jumped 53 per cent, 
to £529.3m. And in 19SI. to 
quote Carr Sebag's analyst, the 
“tremendous buoyancy” in 
television airtime demand con- 
tinued unabated. 

In a manner that con- 
founded most forecasters, 
advertising funds flooded in. 
In October, revenues were 26.2 
per cent up on October the 
previous year, at £67.02rn. In 
November, they were 35.S per 
cent higher, at £71.SSm, while 
in December, they are thought 
to have been around 30 per 
cent higher, taking the total 
for the year to around £610m, 
a gain of 15.3 per cent. 

According to Sebag’s. this 
was a far better performance 
than expected at the start of 
the year, the strength of last- 


quarter demand being of par- 
ticular significance in that the 
October-December period is in 
any case ITV’s strongest. 

In the view of Sebag’s, as 
well as that of agencies like 
Young and Rubicam, after 
adjustment for the significant 
boost given to airtime demand 
in the first quarter of 1980 fol- 
lowing the strike the previous 
autumn, there was still prob- 
ably an underlying rale of 
increase in ITV revenues last 
year of virtually 20 per cent, 
easily outstripping inflation. 

The immediate outlook for 
revenues looks rosy enough, 
particularly as it seems likely- 
tbe contractors will push their 
advertising rales still higher in 
the near future — rates rose by- 
an average of 20 per cent last 


autumn, although the actual 
revenue potential of ratecards 
was increased by considerably 
more than that. 

As for the medium-term view 
it could not be more bullish. 
Both the Advertising Associa- 
tion and most major agencies 
are anticipating a surge in total 
advertising . expenditure from 
the second half of this year, 
with the prospect of record dis- 
play revenues (in real terms) 
in 1983. 

Most pundits are forecasting 

gain in ITV revenues this year 
of 15 to 20 per cent, including 
a small contribution from the 
Fourth Channel. Says Sebag's: 
“ Ignoring Channel Four, which 
does not begin broadcasting 
until November, we are forecast- 
ing net ITV-1 revenue growth 




SSIS 


few 









of about 15 per cent in calendar 
1982, to perhaps £700ra, which 
should reflect another useful 
rise in real terms." 

In addition to the recent rela- 
tive buoyancy of display spend- 
ing generally, there are two 
main reasons for the contrac- 
tors’ current health and wealth. 
First, their success, in recent 
years, in broadening their 
revenue base. Second, though 
much more intangibly, the belief 
among certain analysts that tele- 
vision advertising is once again 
a high-fashion sales tool, adver- 
tisers having learnt, greatly to 
their cost, exactly what can 
happen to their sales figures if 
the screen in the tiring room 
comer suddenly goes dark, as 
it did on the commercial chan- 
nel during the 1979 strike. 

As for the broadening of its 
revenue base, ITV has enjoyed 
great success in luring in new 
clients, particularly in the finan- 
cial. retail, auto and corporate 
sectors. 

■ Compare 1979 with 1975, for 
example, and one finds that the 
share of total ITV revenues 
accounted for by '* consum- 
ables" fa category that includes 
packaged foods and drink) fell 
from fil.9 per cent to 54.1 per 
cent over the five-year period. 

On the other hand the share 
of revenue accounted for by 
durables rose from 15.8 per 
cent to 20.9 per cent, and there 
were gains in other categories, 
like financial and government 
advertising, as well as the 
advertising of services. 


'The area that is now begin- 
ning to develop strongly on 
television,” says Sebag’s, “is 
direct response marketing (sell- 
ing direct to the customer, as, 
for example, in giving a tele- 
phone number to ring) and with 
the amount of airtime available 
increasing significantly with tbe 
arrival of the Fourth Channel, 
the contractors must clearly take 
every opportunity to expand 
then: client base further.” 


Relaxing 


Indeed they are, the IBA hav- 
ing said recently that it is to 
consider relaxing the rules 
governing financial advertising 
on television. Naturally, the 
IBA is anxious to smooth the 
path for the introduction late 
this year of Channel Four, but 
it is also responding ta recent 
criticism that its code of adver- 
Using standards and practice is 
too tough in the financial area. 

At rate-card costs, financial 
advertising amounted to £35m 
(3.1 per cent of the total) in 
1980. 'That is encouraging,” 
says the IBA, “but we believe 
the Fourth Channel offers 
unique opportunities, because of 
its specialist programming, to 
promote financial services. Nor 
should we overtook the growth 
of independent local radio." 

The Fourth Channel for 
Channel Four, or 1TV-2) could 
well prove a boon to advertisers 
many of whom are. just realising 
its specialist potential 

Preliminary first-year revenue 
estimates for Channel Four 


range from £90m to £130m 
(net) but,; in the view of some, 
the eventual out-turn will be 
much nearer the top. of the 
range than the lower. 

The Y&R agency, in particu- 
lar, has analysed the marketing 
opportunities on Channel Four 
and concluded that advertisers 
most likely to- benefit initially 
include a d v e rt 1 s e rs- with 
nationally-sold products and ser- 
vices, and budgets of. between 
£400,000 and £lm . (generally 
thought insufficient to produce 
adequate weight or continuity 
on ITV-1); national or semi 
national advertisers with bud- 
gets in the £150,000 to £400,000 
range; and national or serai-, 
national, users whose budgets 
exceed £lm but are concentrated 
exclusively on JTV-lor in rival 
media (print, or posters, for 
example).".. .. '. r _. 

-• Yet the ag^ey iemphasises 
.that before Channel Four can 
be slotted into the plans of low- 
budget: advertisers, agencies 
and production companies have 
got to find a way to reduce tbe 
extraordinarily high cost . of 
producing . television. . com- 
mercials. 

British 'TV commercials are 
rightly famed for creative ex- 
cellence and lush (sometimes 
tropically lush) production 
values. But with' the' average 
cost of a 30-second commensal 
now- in excess of £30,000, and 
probably - nearer £40,000, 
advertisers are understandably 
cross. 

On file other hand, it cannot 
be said that .PTV is- not, ■ at 
present, doing everything in Its 


power to promote its or* pro- 
grammes so as to help lister 
its rating vis h vis thfe of 
BBCs 1 and 2. \ 

Eleven months ago, t 
radio and television conf 
in Monte Carlo. Mr Tim 
chairman of the Saatchl 
Saatchi Garland - Co 


agency, London’s biggest, 
among a number of spea 
who slated ITV’s perform 
the programming 


ratings front 
He accused ITV of "cynh 
compiacenry” ' and “abysq 
programming.'’, -and said i) 
contractors had all but cess 1 . 

. to sell their owh medium. Otfc* 
agency chiefs have talked j 
the “arrogance” of TV sale 
. departments, and claimed - th: 
ITV is in danger !of becomin 
. money-proceasiflT machim 
that hardly cares a fiff.for lb* 
iinterestsof. agencies :pr-£licp£sl 

- -At- present, -tnfc riantefer tin* 
abated — which -is- jpst as - well.' 
given the prosperity, in which 1 

- ITV is currently ^4-ash.- But -it 
can . hardly afford! to Jet Its 
customer relations tell to pieces i 
as it ‘did during th| period im- 

. mediately following its return 
to the -air in late ’ 1979, when 
relations With .elicits reached 
an all-time low. ; 

Tbis : Is especially so in view 
of the changing *ce of the 
overall broadcasting scene, let 
•alone eventual 1 motes .to pan- 
Eitropeari satellite IV,- which is 
even now exercising the minds 


of most major ad 


Thomi 


sere. • . 

Michael 

m-Noel 


Empire strikes out 

CONTINUED FROM PREVIOUS PAGE 


* Thank Goodness It f s Friday 


time to sit down, relax, and take a lighthearted 
look at the stories you would have enjoyed 
this week it you hadn'i been so busy working. 
You will find them all in 



from 



London Weekend Television 

A new programme for London ITV 
6pm every Friday 


group). The Authority could 
not accept a situation where 
control of Lhe contract, whether 
through a parent or a pro- 
gramme company itself, could 
change without Authority 
approval." 

If the attitudes of the IBA 
towards the company struc- 
tures fascinates the City, then 
it is the Authority’s! involve- 
ment in programme planning 
1 itself which most closely affects 
the companies themselves. 

For both the IBA and its 
franchise holders the relation- 
ship is a delicate one. In 
theory the scheme is simple. 
The companies, in both radio 
and television, are free to do 
what they like in the field of 
creative content In terms of 
quality standards and the 
overall balance of program- 
ming then the Authority has 
the power to give occasional 
touches on the tiller. 

There are times when the 
grey area between the two 
responsibilities cause problems. 
Occasionally a campaigning 
feature unit wilj go a tittle too 
far in the IBA's eyes and pro- 
grammes will be delayed or 
banned: the Authority will 

insist on low-audience material 
being shown at peak rimes in 
order to maintain balance, even 
although commercial considera- 
tions might indicate a different 
timing: now and then the 

Authority's view of what is 
“good taste" may differ from 
that of the companies them- 
selves. 

Probably the biggest single 
example, of the way the IBA 
projects its halance. and thus 
moors the requirements laid 

dnv.-n for it by the Act under 
whi.fc it operates, is its deter- 
mination over the years to keep 
ihe News At Ten exactly where 
it has always been — at" 10 pm. 
The companies have long chafed 
3 3sin«t this since, some of them 
would claim, this provides an 
artificially early end to the 
evening's emertainmenf. 

The IBA's enthusiasm for 
taking its job seriously means 
that membership of tbe dozen- 
person Authority is no sinecure. 
This is increasingly the case as 
the organisation has demon- 


strated its eagerness in recent 
years to go out to the people. 

Under the previous chairman, 
Lady Plowden, IBA’s dedication 
to public interests meant that 
members seemed to spend much 
of their time in trains and air- 
craft travelling the country to 
hear local views. It was a cam- 
paign of meeting the people 
which reached its peak 
during the selection period 
for the new television- 
companies, but there is still 
deep vnnrem within the IBA 
that it should not be seen to be 
too London-oriented or too in- 
considerate of public views. 

Just as the companies 
beneath the IBA umbrella have 
changed recently, so the 
Authority itself may be in for 
a period of alteration. It has 
a new chairman, Lord Thomson, 
who may have spent the past 
year tying up the loose ends 
after the Plowden reshuffle 
but could be expected now to 
start imposing his own views 
on - the course of IBA attitudes; 

It will not be king before the 
director-general. Sir Brian 
Young. retires. His own 
appointment, completely from., 
outside television, caused 
surprise to observers of the 
industry and near despair 
within it. The academic 
autocracy that was expected 
was not so aggressively dis- 
played as many had feared, 
however. The speculation now 
is whether the Authority will 
go outside again for their new 
chief executive. 

Whatever happens, the next 
few years are going to be 
fascinating ones for IBA- 
watchers. Its empire will be 
immeasurably larger and the 
pressures upon it similarly 
increased. Perhaps its problems 
will be greater than those for 
the BBC rince, unlike tbe 
Corporation, independent 
broadcasting's fields of activity 
are strictly limited and Its 
structure somewhat Inflexible. 
But. as tiie past year or so has 
shown, tbe IBA is not unwilling 
to grasp aetties. . 

A. S. 



o 



You should have paged \ 
the Oracle, ITV’s brand new? me 
to use teletext service, ibecausp 
one of its pages (page 223 to [ 
be precisefhas the very latest'! 
financial news. 

R)r further detafls visityoui 
localTV dealer 1 




a# >- 


•*»> * 
tr 
J 


= .■ \ l- „ #\ ! 

‘i*U- ' . 













20 .1982 










tV/? 








are 


to us sometimes. 


In early November 
Channel 4 goes on aic 
Adding a new dimension to 
television. For viewers. For advertisers. 

For independentfilm producers. For just about 
everyone in fact. 

Because 4 is the first of the TV Channels to go 
national on DayL 

Reaching 87% of the country Around 40 million 
viewers from the word go. 

What's on 4 for viewers? 

Our programme philosophy Is one 
*»*?■•} of choice. 

We want to encourage people to be 
selective in what they waich. 

We are broadcasting specific programmes 
for specific audiences. For individuals with particular 
interests and concerns. 

The young. The old The business community 
A’sandB's.And ethnic groups. : - 

There’ll be programmes they'll all wantfo watch. 
Someofthetime. 

Audiences of all sizes. 

Obviously we won’t expect huge audiences 
for David Wilkie in 'Learn to SwimI 

And we’d be surprised if the elderly want to 
watch 'Reggae- a people’s musid 

But while we aim to produce 'distinctive' 
television, nevertheless we are aiming to achieve an 
average 10% viewing share. 

And to reach' mass audiences from time to time 
with our comedies, films and soap opera 

Theopportunitiesforadvertisers. 

4 is going to add to the total market for 
TV advertising. 

Big budget advertisers and their agencies 
will be able to look at 4 as a way of increasing their 
audiences. 

While small budget advertisers will be able to 
appear on the small screen forthefirsttime. 

And target their messages more accurately to 
the specific groups they wantto reach. 


Where do the ITVcontractorsfitin? 

Advertising time will be sold by the existing TV 
contractors, alongside ITY Not in competition with it. 

For them it will mean an increase in revenue, 
ratherthan a redistribution of it. 

A national event. 

Whenever an event of national importance 
is screened on TV more sets are bought. More are 
rented. 

The Royal Wedding, for example, encouraged 
many to trade in their old sets for new ones. 

The advent of 4 may well have the same effect, 
giving a boostto manufacturers and retailers. 

A fillip to the film industry. 

. We’ll be giving the British Film industry one of 
its greatest opportunities ever 

Millions of pounds are earmarked for indepen- 
dent productions already. 

And by looking outside for new material, we’ll 
encourage creative, innovative television. 

Some simple economics. 

In itself 4 will be a small company With no 
more than a few hundred employees. 

Yet, to reach' our objective of at least 
£100 million advertising revenue in 1983, we’ll be 
providing advertisers with greater more profitable 
opportunities. 

We’ll begivingagenciesawiderchoiceof media. 

We’ll be creating new jobs. In short, we aim to 
create more wealth than we consume. 

The showaboutthe shows. 

We are making a series of presentations 
to key marketing, media and advertising people oh 
February 9th and 10th In London and shortly after- 
wards, across the country 

Wherever you 
are, if you’d like^^ 
to knovy more about what 
we’ll be saying, write to 
Diana Hall,Channel4, 

60 Charlotte Street, 

London Wl. 

Tel: 01-631 4444. 







t. 


IS 


YW 


TOTS«E.TndtE5 
laflSCW TELB/SCM 



This is the new 
headquarters building for 
Link Television Ltd. We 
moved in on January 11th. 

■Link is the selling and 
marketing arm ofboth 
TyneTees and'VbrkshireTV 

Taken individually these are big and 
prosperous regions. 

Advertisers buying airtime in both of 
them will reach the biggest market outside 
London. 

They’llreach one sixth ofthe UK 
population, with fully one sixth of the UK 
consumer, expenditure. Which, in cold 
figures comes to amassive £26 billion ay^£ 


V The simplest way to 
getyour fair share of that, 
[is to give T^ne Tees and 
Yorkshire their full share 
ofyourTV advertising .. 
spend. ’•’[.■•••• 
Our highly experi- 
enced sales team here at Link will giveyou 
all the help and back up you need to tailor 
exactly the right schedule. 

Telephone us today on our new , 


number 01-2421666. 


. y§||f^g' 

^ IJNKTH-EV1SION UNITED 

TELEVISION HOUSE, 32BEDFORDRQ^LONDO>rWCIRiHE. 


can get you in 


on the rebirth of 


Commercial TV. 




0^frZbas the knowledge to advise on 
•v 5%. all the “do’s” and ‘tionW’ of a two 
channel system. 

1 AnglkMarkedngcandojust 

^ ■ v that. WeVe spent a lot of time and 

Httpkf money on analysing the possible 
schedules. 

, „ ilos So we know what kind 

^ $ of people will watch, and when 

And with this kind of infoim- 
ation we can help you 
/;‘;plan the most effective use ofyour 
' advertising budget 

Whether yoiire using IT\£ 
Chann el Four or both. 


*Congratidatiom-ifsapOTtab'leF 

This November the face of 
rammerrial TV is going to change: 

Becat^ChamidRjia: will start 
gcang out onthe ain 

Andthe e&ctthene9y channd 
wiH have could completely reshape Timi^ 
howyouuseTV LondonWlV4DX.p^„_ 

So yo u’ll want a company that Teh 01-408 2288. 


if~ Ifyourproductisabig brand, or 
even just launched, we’ll be happy to 
help r ethink your approadlto TV 

If yotfd liketoknowmore about 
the new arrival of Channel Four in die 
Anglia area contact: . 

RidiardEfna^ 


Financial Times Wednesday January iS82 

INMPENDENT BROADCASTING IV 



make the 



s 


IN THE entire history of broad- 
casting, never before has the 
future development of the 
medium been so uncertain as 
it is in 1982. The doubt arises 
not from pessimism, - but from 
an embarrassment of riches. 
There are now just so many 
options available that no one 
any longer knows anything 
reliable about the future of 
broadcasting. 

The option®— often restated 
but rarely twice the same way 
—are based on three main areas 
of technical development: satel- 
lite transmission, cable relay 
and borne video. In a well- 
ordered world, these develop- 
menfcrmight be seen as merely 
refinements to the status quo: 
technical aids to the broad- 
casters. Until recent years, 
broadcasting has been merely a 
convenient method of sending 
TV and radio programmes to 
the home— with huge capital 
investment at the sending end, 
minimal cost at the. receiving 
end. 


ss gsnt>,Tsi .£ s 


Mrfiral fibres individually con- transmission, and the technical ppemore^ pick, 
optical nores. jj^yhauauj- .w _-.ii.- Gf a QtiP television .uMk : revenue from:UHLadveitisere to. 


nected to each home receiver. 

Home video extends the _ 
sibilities, allowing the user 
tape off-air from conventional 
TV broadcasters, satellites . cur 



the past year 'or s»‘i. especially ‘ chafifage-.lo .tbe. : b»od~ 


cable TV (if jnidMV 

by-pass the broadcasters _aK»- -fi^v».tsiiised homevldeoi 


gether and buy or rent TV pro- 
grammes from a new industry 
which holds no political or 
financial bars to memJftrebif), 
as does broadcasting. . . 

It is the last part of that 
paragraph which contains the 


wider membership; have baused 

enough concern. Home. video is is: funding-, he C&pital _ eostfl: of 

not only, a x*aJlenge 'm..:tiie -VS^’JSSS*#; 
average-' viewer’s M our . hours, a. thmkable .(* t-least -$n Western 




(which .for-^he average even- -. .- . M „ ^ 

ing viewer means almost sajtiira- free- martcet tconomy afow&ttoi 

__ tion point); tt. is. additionally a viewer a really wide ctoiggjrf. 

hub of the problem. Home video potential ..competitor for.adver- -progra mmin gtin return xor .pay- 
bas unleashed ’.-a torrent .of. tfsihgrevenae.S<nne , 2ziajor«)in j lug a realistic price lor it. ... 
entrepreneurial activity, some of ; pames are how preparing. to[‘ .Sensibly, thOroadcasters~are 


which' cuts tight across tferri- divert a part of 'their budgets 
tories that have been the pre- into ' ..home ; video, attracted 
serve of traditional broadcasting especially by the precision with 


(for example, opera, feature 
films). That giant aerial in the 
sky offered by satellites raises 
the spectre of foreign incur- 
sions, breaking through at least 
the political bare— albeit at a 
lobby 


taking the vie 
assets, are: in 
ductian-r-witb 


-ftat 


which. audienee groups, can. be; technlcaT fa 
idex&fied and the freedom frmn; satellites and 
government controls. - . /-/ means of dis 

. long as the 

Loyalty ' ' • " ■ <and the; BBC) 

J J .domination in 


Hies-; 


price. The tenacious 

Satellite transmission might mounted by the cable TV indus* the issue further. Will viewers the Media etjuatio 
be regarded as merely a more try in Britain has at last won pay out about £250 to install *. Bitt “the superi 

some concession from govern- dish' aerials and further dilute and- the BBC ' 
ment in the present subscription their loyally to ITV and BBC- • not only on pi 
TV licences now sanctioned. (already divided 50/50)? Orr ^ --Technically, 
Until these developments rush, out to pay an. extra _ of . ; tele 

occurred (only significantly in per month (or mare if: all costs • gr ammlM by air has 
the last five years), the broad-, are. included) io have, a belter iwality than 

orbit high jn the sky. • ' casters had little reason to res- TV service additional to-BBQ - ^adi^.-and for some l 

Cable relay, is another way. pond to the new technical and ITV? If. the Home _ Office ’£ e .technically be’ 
although at first ‘ impression options. With about 99 per cent protects ITy - by^prohibral^J 


tHeir main 
'gramme-’ pro- 1 
ent-asweDas 
-Vidgo, - 
are-: only : l- 

tiomand'as : - 

compares/ 
In. their- 
oivthey 


Strc 


• ... . ... .UUUUU4UUU U* 

Satellite and cable TV cloudg remain powerful I fidements.’i: 


m 


elegant way of performing this 
job — dispensing with, for 
example,. ITV s 535 regional 
transmitters and relay stations 
and doing the job with just one 
or two aerials in a geostationary 


B_eea. 




1 £ 





independent 



COO-: 




IN THE 1950s and 1960s, .the 
cinema held a magical fascina- 
tion for young' people, especi- 
ally those who wanted to make 
films. The medium gave birth 
to an industry within an in- 
dustry, that of independent 
production, . 

In the last. year, two events 
have now heralded a dramatic 


domestic , satellite rec 
1 ;-^here. . arfe, bowevi 
‘ major technical decisic 
the broadcasters in 
decade; - decisions whit 
involve capital expenc 
aJ arming • proportions, 
will be the addition oJ 
sound (not in itself al 
exertise-^but -essential ti 
pete with home video); 

Next - is the adcQiticft . pf 
digital systems, replacini.fte v 
present analogue technoloir;4 . 
changeover that is 'siowiy|ia^ ' - 
pening at the production 
but how. far .will tfre econc 
• of. - broadcasting . allow 
spread into ‘the. distribnj 
nhaTi^- . . ; k..-. : 

Third is, the winding ftp|f v * / r: " 

refuse to use the word “spon- valuable se^ary markete for.. 
sored- because its meanl^has the independent -produ cg:.:. 

been grossly nusr^resented by Most, of this new activity ,is _ 


There is. however, a lobby still 
opposed to sponsored films on 
Channel Four, mounted by swne 
(bnt not' all) in the ITV com- 
panies. For independent pro- 
ducers, the subject has become 
so sensitive that some even 


offers a financial boost the like 
of which -, independent; .-pro- 
ducers have • ■ .never;. ■ known 
before, ■ ' . . .'•• • 

Cable, television, espedally 
overseas,- and. the' prospects erf/ 
satellite TV, - now . provide. . . 


■/.*-■;■- 


change In the fortunes of the 
independent producer: Channel 


the antagonists. 


Nonetheless, industry has de- 


_ on film, a ; small percentage 
video tape and, -for. 




(someexpect 
as 25 per cent) 
has provided 
inexpensive short film subjects, 
such as the cinema, could never 
emulate. 

Indeed, independent producers 
who attempted to make a living 
out of the cinema often used 
to complain that their returns 
from the distributors would 
barely cover the costs of the 
release prints. Video has 
changed that dramatically, and 
so too has Channel Four — even 


mgtoeerihg i 
te televisioi 


Ci r/ uTIu « iuiu-aiaMur^iiai •»«*«■ mwank taw which hnnic lin me- Jtauons ..enure zeievisio 
It ^ be as high Haansm-s GI«W (Royal heap:: 

tj. and the latter. aam v-itobert yiaherty-a Loui- T^; ln ^r -the -preseiit ^5^ihe ^Mdar . 

an outlet ,iana Story (Standard ^ OU) and 1 

^!\. Schl f Tcrrntnus "been limited because most of-^ ■■^h© . Jast possibility, woulth' 
I British Rail). If Channel Four ^ ' production' was. TEV- or , ;bnng toviewers ciziema quality\ 




doesn't take the new generation aBBGbased 0 r for mu^rjsmaller Pictures, wJiJlbi-fi Stereo sound. • ' ‘ 1. 

Of. sponsored films, the 'Video -nrwl :in;'a mu ‘.'wirtu RpfPMi " "* ■ 

inA' 


market will — and' 
equally important 
Four’s finances 


Video 


before It is on the air-because f our, nas recently quoted needed costers are thus. . not only 

JSr^iSSf toelK tSeZil is substantial and the markft ; comment, but #d technical/ 
industry revalues of £580m, -1- 

igin st TV Sim exports of paiy nCTr pToiuc ^ wW ■;•»« i (By tergal -tnu- 

_ * , . . . . ■■ in 1981 generated more revenue r.mitters) will j become .as 

In their just-publiShed terras |jjan the £650m 6f TV' set sales^ outmoded as those of .the ffim 
of trade, Channel Four is offer; _ ye t with very few commer- /industry; where the product 


Indeed, Mr Justin Dukes, 
managing director of Channel 
Four, has recently quoted 


room activity in trying -io pre- xli 

diet the new TV studio needs 
of this independent production 

sector. It coald become another ^?- * ccej>t 

great, bonanza^ fuetiing video, . . > 

Cljannel Four and cable TV. But " Tv e pressures on .. broad- 



can enjoy a firm commission, 
where once, he was risking his 
own money without any 
guarantee of a penny in return. 

This change is important in 
understanding the transfor- 
mation that independent produc- 
tion Is now undergoing. Whereas 
a few people in television have 
worked independently very 
successfully they have generally 
worked as freelance producers 
rather than independent 
businessmen with a significant 
stake in their products. 

Now the video industry has. 
spawned a self-supporting inde- 
pendent production sector which 
is not necessarily dependent 
even on the sponsored industrial 
film. Ex-TV people, such as 
Michael Barrarr. Michael Pea- 
cock and Mike Wooller fit pays 
to be a Michael) are now head- 
ing up independent companies 
deeply involved in video and 
television. Anti the rapidly- 
growing Independent Pro- 
gramme Producers' Association 
contains amongst its members 
many names from the 60s or 70s 
who either tenaciously struggled 
to succeed in the cinema or 
turned repeatedly to sponsored 
films for sustenance — such as 
Rodney Gieslcr, Martin Benson. 
Gordon Bradley and Ian Shand. 


\It' may be that, the traditional 
methods of programme distribu- 


tor producers 30 per cent of 
exploitation revenue, much of 
which will come from video as 
well as cable TV and overseas 
broadcast sales. This again 


rial factories available to stake *? ut **** method _ of. - 

the programmes in^— is a pros- . mcnibioon comes more/under 
pect worth pondering oil the direct control of the: viewer. 

J. C. John Cfaitttdk 


Sponsored 


For those who accepted a total 
commitment to sponsored films, 
video and Channel Four have 
■come along at just the critical 
moment when the sponsored in- 
dustry was In decline. Up to 
date, still months before Us 
starting date. Channel Four has 
commissioned 227 productions 
w or tit £Sm from the independ- 
ent .sector. . At approximately 
£35.000 per production, tins 
trebles the 'value oF an average 
sponsored film today— and in 
numbers of. programmes is prob- 
ably' half the total now being 
sponsored by industry from com- 
mercial companies. 

The bridge between .sponsored 
films and Channel Four is still 
causing engineering problems. 
Apart from the straight commis; 
svons from Channel Four, many 
sponsored film companies be- 
lieve Uiat industry itself should, 
become an important source of 
new programmes for the chan- 
nel. Not only wtu this supple- 
ment Channel Four's production 
investment providing a supply 
of high quality arts and- leisure 
programmes, it should also offer 
industry a chance to make its 
own voice heard — in tine with 
the diktat that Channel Four 
will air material seldom seen on 
the other TV services. 


CfftTIAlin 


The gapk a lot smaller them you might imagine; 


conventional concept on its head. // ' - ■ - / 

Because today, in nmiyvrays, thanks toNorth. 


spreads downwards. 

In Grampian, for example, incomes are rising 
fester than in any other ITV region. 

Unemployment is below average. 

The population's beaming. And 
the future’s looking good. 

So, to enjoy a 
profitable slice 


ife 4 -. -V’ - 

- iT... ' 1 — 


s-c'r 
5 2 Sp?v t; 


Vb!..' 


i ■ . T*l-' 


oftheaction 
in 1982 and 
beyond, just 
start at the top. 



GtampianTderisanLld 

29 Glasshouse Street »- 

LONDON W1R5RG 
Tck 01 439 3141 
Grampian Teievisicn Ltd 

Queens Cross ABERDEEN AB92XF 
Tel: 0224 53553 












N 


Wedn^^^jaiipary 20 1982 

INDEPENDENT 'BROADCASTING V 












m 


' ;r: .■* •“./ 


to market radio’s advantages 


- lenge from new hopefuls soon last half of the year and the toz London, where local radio International, followed by two Anglia, for example, the 

ivatno, orqaty aglAoffi : /tp; / xpe. aster. medium is “ optimistic " about is almost a contradiction, the film companies, Lonsdale and Orwell and Saxon stations hare 

•- inveroess' regHm,-jgDetf.-rKi toB..- ■ Even so, although commercial 1982. Comparisons with 1980 reluctance of national adver- Downton; Queensway C-arnets: been brought under the Suffolk 


■ m ■ T-,1 1 ■! rT • Ji," Iririt I Iiimil- < JjJif . —a-- «wi*.vy viuujjouuj ^ vu <ui uniHW imiumno »v» - — , *■“» r— -o — . “*>■ “ vim ^ " 

1 *°r toe next batch of stations radio because of the extra toat Capital Radio changed its and large retail groups that create more individualism from 

-. - *7**3 popo- coming on the air — those serv- business paiT»A/i as a result of progr ammin g format dramatic- dominate television advertising the smafler stations as they 

“8 Newport, Guildford, East the 3TV strike. ally in an attempt to appeal to are conspicuous by their fight to build up local advertis- 

■ Kent » Barnsley and Stoke — it The -main Tyrablem. has been lnop*te* ** a means of per- absence. ing, which will always be their 

- 15 still a very small advertising wi^Tnaior suadin 8 packaged goods con> Radio is aware of toe chal- main source of revenue. 

■' medium, taking less than 2pex advertSS^Sm^s^o 3JLe P 311 * 68 * JJ** Procter and Gamble lenge it faces and toe Associa- Commercial radio enters 1982 
: <* toSrOK aSSng^- and Unilever, to make more use tion of Independent Radio encouraged by the better 

, ' i !2!S'52S^. d ffS- 'POffin» ■ ■ - , of radio. Camples has been making autumn revenue but well aware 

, .toero^^ ^-^r C Eflyi bev a home,. T n i9si a ryv,n^ mr™ wbc ^sers to i^ere<ho. More changes for Capital presentations to agencies, that virtually all the stations 

' ^ rtSted : mSSd^o^dv^ ^ Mo can be safely predated extolling toe flexibility of toe will report lower 1981 profits 

- ■ eq rTrS?S^f^S , n;riT vi Vh ' • ti-irr • iSaHin' Sv^trSfinn- tote year as Jo Sandilands, who medium and its cheapness, and that the audience research 

Joined in toe autumn as pro- There has also been a ration ali- published last year showed more 

W^7 <3?cStTn U.e &mm.e «nt»Uer .iter , ,W utioii in tie wa 7 that radio Ltion. with a decline in andi- 

• -liSdSr%A^JSS?^D'£f ' L s JJS JESS 35 editor of Woman, gets into sells itself, with more emphasis ence rather than a gain com- 

. 14HX&QD.. Broadcasting - (LBC), *«"*• year. Since It was a Very TWs could be because advertis- . stride Q_ te 4 Londoners nn reeionalism. IRS seUino air nareri with 1979 

the.. afrnews station winch was good’ year for the advertising mg agencies gain more rommte- ® bS she h^Tot S hSofSst southern Pa £f ♦ „ n alcn fppl 

swmmbts SESSS 3 S 3 SmSrS ?SS£! 

vm Capital Radio, by fartoe although ’.there was a marked gradually approached JSffi by tomr C^tal R^o has itsown^l^ 32S&S 1 . 1 J2£? d rSSJSi 

biggest, statioai, fering ft chal- improvement in demand in the * Mo 2 wommi listeners Even force. So agencies can now buy c ?als ofteS sound as cheap as 

: JJ i'v/-- •■■••. Sw^be^otofredto^ttop 50 Capit ^i iad ^ be ^ °« ober rog 10115 rougWycomparahleto they actually are. and although 

.-. .■ Cl . Ski TT ever, with • an advertising television regions. There is also an effective commercial can be 

*..? SffAlKTPT Q PPPtlt Sdh^wlh^ta tts eSyS revenue of £LJn and during the possibility «tf baying toe made for less than £250, too 

- k3 Lx V/llflvl d V/vdl L has contijhuted little to agency 1 ® 81 “ t . attra£ fced £14.66rn in whole radio network at the many lack much in the way of 

. M'VWWJ.AV wBEOfloiiKiiea mue to age y advertising, a rise of 7.4 per peak listening breakfast period creative inspiration. This is 

- jJtvuia. /«Ant— rwnT had but no4 enough tn tJ»mTjfdi one nhone rail — the v — n 



7 


DBA Plans for 
Local Stations 



Existing and approsTxl 
stations 

Twinned stations 


. advertising, a rise tJ ± per peax usiemng «rea»uasi penoa creative inspiration. This is 

. cent-^not bad hut not enough to through one phone call — the because the agencies just are 

• • . signify real growth. cost- of £2,500 for a 30 second not putting their best brains 

' ± Z ^ P.-rnenctve The Capital range of adver- spot should interest national j nt o radio, and will not do so 

| P Q tisers expresses toe problems advertisers. until jt offers them , better 

L'V/ L/XV l3 The fact is that 1981 was a faced by commercial radio in Radio needs to market itself rewards. But this cannot happen 

■ XT .. • . -difficult year, for independent toe UK. Retail stores account more forcefuHy in 1982 to get until more major advertisers 

vr. ttAiifetofti TopircAn WaUattac radio mainly because of toe for over 30 per cent, followed back into growth before toe use radio as a matter of course 

^retoer m JSSSSst mZS- national -advertisers preferred by film and theatre advertisers new challenges of Channel 4 in mixed media campaigns. 

to devote their budgets to with 11.4 per cent, and food, and, in particular, breakfast itisachicken-and-eggsitua- 
S « increasingly expensive TV com- traditionally the major adver- television appear. Already it is tion and it is not impossible that 

Son Will hA the ilidmAJidAnt «»croials. The split between tising sector, with Just 9.1 per obvious that some of the by next Christmas some of the 

TnnaTiips fnimn iSiSflS national and local advertisers cent Publishing, hobdays and stations are so small, and less substantial local radio 

on radio was only marginally In car advertising come next with operating on _ such narrow station chickens will have been 


REGIONAL television received’ Kr finlrtcmin TnAlrwwi DaHattac radio manuy because of toe for over per cent, touowea oacx uuo grown oeiore toe use radio as a matter of co 
JtSiSrt ^tsona! -rfrajsers preferred to fita yri Ith^re adwitisen ee« fSSfr'SJ in mb'* media eimpaigns. 

when three new teams of xines and local niwwianprs have to devote their budgets to with 11.4 per cent, and food, and, in particular, breakfast it is a chicken-and-egg s 

DtoOTan^ jn5Srs h?Sm to increasingly expensive TV com- traditionally toe major adver- television appear. Already it is tion and it is not impossible 

SSS^Sd ^wonti^toS ’Sn wm b? toe tod^endSS raereialsT^Ihe split between tising sector, with Just 9.1 per obvious that some of the by next Christmas iome of 

■ SwdSS&oS fnnS tmmo ^ ^ toe national and local advertisers cent Publishing, hobdays and stations are so small, and less substantial local r 

_ wwi m|niy.e^_i^nrais^^trorn ^ corapaniK^ trump cam inline mftror^aiiv in car advertising come next with operating on such narrow station AhirkATw win have i 


IB A announcements of just over' increasing competition from 
a- year. ago was a commitment breakfast television, satellites, 

- jo incrMsed regionalasm'm both cable TV and videos. Certainly 
ownership and content Two’ many at the IBA believe that 
new: 'dual regions for the East regionalism will, in the long 
/.and West JiOdlands and South run, be the companies’ greatest 
- and-' Son fh East were created, • strength, bnt the debate on the , 
toe troubled Westward franchise subject has far from been) 
was awarded to TSW (Tele- resolved, 
jjision South-\Vest), and Thames /. ' As Sir Brian Young, director- 
' -. and London Weekend were told general of the IBA told a meet- 
y . t ©' improve their regional con- ing of the Royal Television 
/.fctadt".! Society: "Some argue we shall 

r ' ’ - /At the time, the IBA said ' need fewer regions in order to j 

• /jfhat: “By instituting the. dual have a stronger critical mass 
vi- franchises in. the Midlands and and more centralised financial 

South, -of En^and, toe authority, strength .to put on strong pro- 
\. : Jopes to ^.ve expression to the grammes against international 
;/ wishes of the people, living in rivals.” 

/ s /;toose regions to see a greater Others argue that there 
..-/reflection of their affairs on should.be more because terres- 
-".-'tdevision than before.” ... trial, television could do a 
/. The first signs, are that the regional job which satellite 
'-.companies involved have taken competition could not 
7 their cues and heavily com/ The difference in view seems, 
tnitted- themselves to making rather predictably, to follow 
‘" programmes which reflect the netwhdc. company v nonnetwork 
' life of their regions. - . ' company linesL Mr Taylor of 

'• -’TVS (TV 'South); the new -Central, for instance, empha- 
service for toe Sooth and South sises: .“We are not obsessed by 

- East plans a total of 800 hours regionalism.” 

;r . local / and "regional pro- Central, as a network com- 
4 gj ^TTimih g in its first year from, pany, is planning to make pro- 
Sts Southampton. - and . Dover grammes not just for.Britain but 
g -studios.; ' ; '. 4 for too rest of- toe world, 

.• The company is running an including satellite television, 
houn-lo&g./ news and 1 current .-from its ; new £20m- studios in 
’affairi pro^amme, Cnast to Nottingham- >• 

Coari, from 5-8&&30 which will' . Granada, also a network 
also indude'toe ITN news. This company, believes that the 
has meant doubling toe ntnnber present proportion at regional 
of journalists employed by time is about right and .that 
Sontbem, :- albeit for >an ex- anyway, the line between what 
panded / area producing two Is and. is not a regional pro- 
substantiaRy different pro- .gramme often becomes blurred, 
grammes for East and West- ■ The IBA reported “a steady 
Central TV, toe dual reglod demand for more local pro- 
, . carved out of ATV, will be coa- grammes ” firom their public 

• • centra ting on news-and current meetings before too franchise 

affairs to be^n with and wfli -awards and the Authority said 
, put out tout hours a week from.; /it would, like to mate- further 
Nottingham, four hours from provision, for “ sub-region ” 
Birmingham and four faours^of television from individual 
: v Interest to both. .- transmitters when finance 

'•'■I think toe East Midlands allowed during the current 
-.^dofes have an. Identity and eight-year period. 

: Central TV will be trying to The number of hours of local 
-reflect that identity," said Mr programming required by toe 
" /’Jeremy Taylor, general manager IBA has been creeping up. 

- • 7of Central TV (East). ; The Significant increases in regional 

• " company also plans regional programming were expected 
documentaries, chat shows and from most of toe companies 

’r^q4Snfc'‘- ; - : > •/•• '• from Jantiary X. - 

-j- ■ There is evidence, despite toe 

\ ; Priority- . . opp<meats of- “parochialism," to 

; v_ - ’ ' suggest toat -viewers do like 

, At TSW 1 the regional accent local programmes. Local news 
,k' v . is even stronger. ■. M Regional, inagarines . score -consistently in 
■ programmes are; our most irn- the ratings, 
portent priority/ We reaHy -jn. /Ulster, where local news 
would be dead .if they weren’t,” <ran present its own problems, 
-said - ' Mr Keviir Goldstein- the Tocal news magazine Good 
Jackson, joint managing direc-. Evening Ulster can take more 
; tor and .programme controller. than.-4() per -emit of all TV 
/ The company . is currently homes with only Benny B3U 
putting out eight hours a week scoring higher on one recent 
-' .of lorel - programnies but tote . evening. -/ / 

/ ‘.will- be increased, to 10 by the One- important regional de- 

- end- of the year. Apart, from .vetopment this year — toe open- 
’ ' gardening,. . fishing - and pro- ing of toe new Welsh language 

gramm es for young people <HV- fourth channel in November — * 

: //Saturday mornings TSW has -will remove the test remnants 
- lured Kenneth Kendall to do of an unfartintete anomaly. 
r. A half-hour round-up of regional HTVs Welsh pro^animey will 

• /'and local news for the deaf and xnove to- the' new channel, and 

hard of hearing- those in Westo n-SuperMare 

/ /“Television will become more w jj 0 still get /HTV programmes 
regionalised. It has to because instead of HTV West from 
of thergrowing competition,” Mr across -toe Bristol Channel will 
Goldsteln-Jackson said, who also ^ a b] e to have their Welsh 
- expects toe growth of inter- news jn Engtish in future. 

SiT B 7 ' Raymond Snoddy 


Thorn croft 


•ThelBAbumdtKtaddaVIfFreby 
for Ashford when a frrqucncybrcomn 


r-Ai-'. v- 





24 hours a day. __ 





imwiictt >*» i iti jin • r iiilfiifi 






““ -■-jlONA^S^ 

im-E. ■ HAT MAKES WOMEN HAPPIER 

SHINIER 


--v . 1 ■ v 




In case you didrit recognise the object above, 
firstly you ou^itto be ashamed of yourself 
secondly its a radio, and thirdly itfe no ’wonder your 
sales don’t match up to your wildest dreams. ■ 

Eadio works. J 

And weve got the letters to prove it. M 

Philip Hudson of Masius, who used radio Jm 
to promote Babycham, said:Tye spent 
years tcyingto discover thebest way of 
gettingthrough to young women in 
. London..^ 

Ian Euddlesden, Advertising Man- jjp f 
age*of ' Volvo Cbncessionaires,said: iSRc. •/ 

'Our advertising on radio has been ap^- 

extremely successful It has played MB Br / ' . 
avM role in convertmg sales. 

ItreaRy has beena’veiy reward- / 

ing exerdse to witness ^ f ■■ ' 7^ // /. ; 
such an immediate : 

responsa’ 

We thou-^it 
Chuck Anderson, 

Chairman of 


wJm M;* 



Contract 

Advertising ||||| 
who handle 
Wsdom tooth- 1UJ 
brushes, sum- Ws 
medup radio 
wellvhenhe i 
wroteiWdi radio 
you eanactualjy talk 






B to people when iheyve got 
n a toothbrush in their mouth. 
H Chatthemupinadiiect, 

H friendly mannerAndtooth- 
m brushes are used every . 
9 day; the sheer economics of 
■ radio mean you can have 
8 sustained presence for Hie 
i cost of a couple of weeks of 
| TVairtime! 

| Judy Gregory Prindpal of 

i tire Manchester College of 
f Si^it and Sound Education 
addedtiiatusingradio!..has 
proved to be more successful 
than we couldpossibfyhave 
imagmed-By the second day 
we were gettingresults, 
andbytihe end of the first week 
we had taken more enquiries 
k than we had previously 
Ik taken in a month! 

Then there was that 
letter from...butno, 
ratiierthanus dip 
further into our mail- 
bag why dorityou dip 
into your advertising 
; budget-and prove 
it for yourself 
Wenowretumyou 
to your radio. 


: /,- :?K s mm ' ' ;• 

. - , . ' ' •*' ' ■ 

mm 


OPENYOUR 



m.‘t : * 

/ ' v V: : 



ASSOCIATION OP INDEPENDENT RADIO CONTRACTORS, Regina Rouse, 259/269 Old Maiylebone Road, London, MV1- Tel: 01-262 6681 







independent BROADCASTING VI 


Financial Times Wednesday January 20. 1982 


How does Peter Jay, the chairman and chief executive of TV-AM, respond to doubts 
about the future of breakfast television? Chris Diinkley reports. 


A lack of petrol pumps 


Breakfast television in 
Britain will start in May 1983. 
Correction: commercial tele- 
vision with that famous line- 
up of star personalities — 
Anna Ford, David Frost, 
Robert Kee, Michael Parkin-' 
son and Angela Rippon— will 
start its first nationwide 
breakfast sendee in May 1983 
bat the BBC will almost cer- 
tainly beat them to it. That, 
anyway, is the belief of Peter 
Joy, chairman and chief 
executive of TV-AM, the com- 
pany which won the early 
morning franchise from the 
Independent Broadcasting 
Authority just over a year 
ago. 

Jay, who is 45 next month, 
could almost have been 
invented for the job. Son of - 
former Labour minister 
Douglas Jay and son-in-law of 
James Callaghan, he was edu- 
cated at Winchester and 
Oxford (1st class honours 
PPE and President of the 
Union), worked at the 
Treasury, became economics 
editor of The Times and pre- 
senter of ITV's current affairs 


series Weekend World and 
The Jay Interview. He was 
named Political Broadcaster 
of the Tear and chosen by the 
Royal Television .Society as 
Male Personality of the Year, 
then from 1977 until the 
start of the Thatcher admin- 
istration, he served as 
Britain’s ambassador in Wash- 
ington. 

Now, with an eight year 
contract in his drawer and a 
declared ‘^mission to explain." 
he is working in a temporary 
but smartly appointed office 
in Camden Town, just down 
the road from Hampstead 
where he grew up. It faces 
across the road to the canal- 
side site where his company's 
permanent headquarters and 
studios have reached the 
stage of iron girders. 

When I went there to dis- 
cover how be responds to the 
familiar litany of doubts con- 
cerning the feasibility of 
breakfast television in Britain 
he was not only far from 
despondent at the prospect of 
BBC competition, but aggres- 
sively bullish about the whole 


Idea of “ electronic news- 
papers." Swinging his long 
legs up onto the desk like a 
front bench minister in the 
House of Commons he said: 
“There are three things 
that I’ve been saying from the 
very beginning about break- 
fast television and the BBC: 
one. they*!! do it; two. tbey*ll 
do it properly and well; and 
three, they’ll do it first. You 
cannot preside over one of 
the great broadcasting organ- 
isations of the world and stay 
out of wbat 2s now manifestly 
one of its most important 
areas of development." 

Assuming then that the 
BBC does start a breakfast 
service and that the audience 
eventually splits 50-50 
between them and TV-AM, 
how big will the audience 
have to he before Jay’s outfit 
can make a profit? His target, 
in an age of almost total 
pen etrati on • by both BBC 
and ITV transmissions, means 
that 10 per cent to 12 per 
cent of hofnes will have to be 
switching on one of the break- 
fast services: Does that seem 


likely? Jay doesn’t see why 
not, and quotes a "figure of. 
12 per cent to 15 per cent of 
American homes now tuning 
In at breakfast time. 

But we have heard an 
awful lot in the last year or 
so about the differences 
between morning routines, 
home layout, and set owner- . 
ship in Britain and the U.S. 
Even accepting that Ameri- 
can figures are now as high' 
as 12 or 15, won’t it take a 
long time to persuade the 
average Briton to abandon 
the radio and the cornflakes 
in the kitchen and take to- 
the television in the living 
room ? Another of thosc- 
snorts from Jay: 

“That argument reminds 
me of Henry Ford. Ever 
since breakfast television was 
first suggested in Britain - 
people have been shaking 
their heads and telling us 
what a small number of 
British, homes have second 
sets, and how British habits 
aren’t geared up to watching 
television in the morning. 


Well of course they are not. 
If Henry Ford bad. sent out 
.market researchers to see 
what facilities . were like 
before mass-producing motor 
cars they would have found 
endless numbers of stables 
and "bridles and saddles and 
shovels for clearing up horse 
droppings. .'What they 
wouldn't have found was 
petrol pumps.” 

What about the problem, of 
basic resources, the supply of 
news? So far no agreement 
has been reached with FTN 
■ (they too applied for the 
breakfast franchise) who will 
not:. at present contemplate 
acting as a “news agency" 
supplying raw material to 
TV-AM- ‘ They are only offer- 
ing a fully finished package 
with the news read by ITN 
staff. • 

“There wouldn’t really be 
much point In us having five 
of the best known presenters 
on trie vision If we were going 
to have the news read by 
somebody from .ITN," says 
Jay. “We still hope to reach 
an agreement allowing us and 
TIN sovereignty over outputs 


The Fourth Channel: meeting great expectations 


IF THE Fourth Channel, now 
to be called simply Four, even 
gets within striking distance of 
the hopes that are being built 
around it then its achievement 
will have been immense. It will 
at one time .bring relief to 
minority audiences eager for 
programmes; it will provide a 
hungry independent production 
industry with a vast outlet; it 
will offer TV company pro- 
gramme makers the freedom to 
experiment; and it will give 
space for much loved old 
material to be seen again. 

But while viewers may be 
wondering if the new channel 
will even approach those objec- 
tives, the industry itself has 
rather more practical concerns. 
Can Channel Four produce 
sufficient revenue to cover its 
costs, and do so within the 
three-year period that is now 
regarded as the crucial testing 
period? Too great a success 
might produce squeals from the 
companies themselves, losing 
audience and revenue as the new 
offspring flourishes. Failure, 


however, would present the ITV 
system with daunting financial 
problems. 

By next Christmas Mr Jeremy 
Isaacs, the chief executive of 
Four,, will be one of the most 
talked-about men in the nation 
since by then the first few weeks 
of the channel’s operation will 
have been completed and we 
will all have made- our own 
instant judgments on whether 
the Isaacs formula has worked. 

Show on the road 

By any measure he and his 
colleagues have had very little 
time to get their show on the 
road and. La- television terms, 
not that much money, with 
which to do it. Its revenues in 
1983. its first full year, are 
likely to be much the same as 
those enjoyed by BBC-2 (wliich 
stood at £86m in 19S1) without 
the benefits of cross-fertilisation 
from BBC-1 since Isaacs will 
have to pay for supplies from 
the main ITV companies. 

By no stretch of the imagina- 


tion is Four going to be a rich 
channel, and this has led to 
some very . hard bargaining 
indeed between it— the chief 
negotiator being Four’s Mr 
Justin Dukes — and its suppliers. 

In a perfect world for Four 
the channel would have bought 
complete rights for the average 
£30,000 an hour it feels able to 
pay. It is those very residual 
rights, however, which every 
producer, whether independent 
or already part of the ITV 
system, is eager to retain. Four 
wants to see revenue generated 
from overseas sales and from 
merchandising (soap bars made 
from Fourth Channel cartoon 
character figures?) but these 
are exactly the areas that any 
self-respecting producer also 
sees the jam coming from for 
his bread. 

Within the BBC and conven- 
tional ITV systems- the control 
over product is much more com- 
plete and those organisations do 
not necessarily have to involve 
themselves in the minutiae of 


who paid what if a programme 
is bought for showing on cable 
television in Anchorage other 
than sorting out internal con- 
tractual positions. 

The difference with Channel 
Four is that it is a publishing 
hoyse, ndt a production house. 

This has brought both joy and 
pain to those who have dealt 
with the Channel Four com- 
pany. The relationship between 
author and a publisher in 
normal book terms can be diffi- 
cult enough, but it is com- 
pounded a thosuand times in 
something as sophisticated as 
television. There have been 
considerable areas of debate 
over such matters as who funds 
what, when ? How is production 
and financial expenditure 
monitored ? Who deals with 
post-showing letters, telephone 
calls or major rows ? 

There have been lengthy con- 
versations about what happens 
when a programme goes over- 
budget, something which can be 
caused as much by. weather con- 


ditions as by inefficiency. Mr 
Paul Bonner, the channel’s con- 
troller, told independent pro- 
ducers recently; “ We shall 
expect feedback . . .of the pro- 
gression of money as the weeks 
go by. We have finite amounts 
of money, one overspend is 
somebody eise’s programme 
that does not get made.” 

Full flavour 

Even with the various items 
of news that are heard about 
.programme commissions, it is 
dfficult to assess the actual form 
the channel is likely to take. 
That is hardly surprising. The 
full flavour of the system is pro- 
bably unpredictable, even to 
those mast closely involved in 
it. Clearly it' will have a per- 
sonality of its own, but the form 
of that personality will not 
emerge until the transmitters 
are actually whirring. 

The Fourth Channel's main 
contractual relationship, with 
the franchise holders them- 
selves, remains to -be cemented. 


and co-operation over Inputs.. 

If that doesn't happen before 
we go on the air It’S some- 
thing that I’m sure will just 
grow like Topsy later." 

Whatever happens, TV-AM ' 
will be using seven of its own 
ENG (electronic . news- ■ 
gathering) units and the 
established wire services. It is, 
anyway, not the hard news - 
bulletins themselves which 
will fill most of the time on - 
the breakfast show, but that 
famous process of ‘’explan a- - 
tion” which will be the job 
of the star presenters- - 

Some onlookers In the 
broadcasting world have es> 
pressed doubts about the 
ability of such a collection of 
celebrities to work success- 
fully in harness, but Jay 
declares emphatically that the 
very thing which brought 
them together was a shared 
belief about the need for 
serious (though not solemn) 
popular (yet not trivial) 
analytical journalism. The 
widespread notion that they 
were all chosen merely for 
their fame and then induced . 
to join TV-AM by the offer of 


although some companies have 
projects in. the pipeline which 
will be offered to Jeremy Isaacs 
when the contract position has 
been ironed out 

The problem, inevitably, is 
money. Established television 
companies have higher costs 
than independents and those 
companies are therefore seeking 
a higher reward for their wares. 
The Fourth Channel would 
prefer there to be an element of 
.deficit financing — selling shows 
for Iks than they actually cost 
— to- get (he operations going. 

Among the companies, how- 
ever, there is a feeling that the 
channel should lower its sights 
from . 50-60 hours a week and 
pay proportionally more for 
those -fewer hours!- . Channel 
Four itself regards such argu- 
ments as naive. - The reduction 
in hours would be in low-cast 
peripheral periods. and anyway 
a 10 per cent drop in hours does 
not- mean a 10 per bent rise in 
prices for other periods. 

Scheduling the new service is 
going to present some fasdnat- 


■ vast sums of money- clearly 
irritates Jay: 1 . \ - 

"Why should .. somebody 
who Is just a pretty itte, 
making a big ineome in a - 
secure way^give it ati up ;fpr - 
the sake Of joining,- an 
organisation where they’re - 
going to have to work through 
the night and £0 on the ak at ■; . 
dawn. None of theta is being'"-' 
paid more, money than, they 
were- already getting— aBow- -• 
ing- for inflation— -although 
they, do get some shares v 
whlch will be vahxable/gSven 
that We succeed-! ■ ••■■■Vf. " - 

“If you look - in detail- at 
their CVs you’ll itod tharfliey .r 
are not stereotype' ,, figure- ■ 
heads: they’ve all done serious - 
work as producers or writers 
as well as presenters.!* ’ . All 
have agreed •to TV-AM’aco Ex- 
tracts for 26 weeks-. In the 
' year, leaving them free J to do ; ‘ 
anything they please for the 
other 26 weeks anywhere else, 
in. tiie world, and . anything 
except broadcasting in Britain. 

Though, he admits- to an--.; 
emotional attachment to Fleet ' 
Street, Jay has. no. doubts., 
about the future— of/ theV 


Debate over . Welsh 
■One. of the more- aigued-oyer 
aspects of the new television . - 
• services of the 1980s is the 
Welsh language service whieh 
will be offered on the Fourth » 
Channel in Wales. Introduced _ 
after Welsh Nationalist' Hr 
Gwynfor Evans. threatened to ’ -■ 
starve himself to death and 
budgeted at between £20m •• 
and. £30m a year; the service : 
Is aimed at 540,000 Welsh 



'MrPeter Jay: ^ Pregard 
-breofef astv ' television as 
one of . the least '. risky 
cwmercitil. pr^situms 
ewer:-vndei1ak^” 

British' public’s source Of 
morning' news: “The inafa- 
stieamttfjouriuilisin in ftirtUjte: 
^is^hotr-: going -to-be In hewSf 
papers. I regret that, but I 
recognise it: . Newspapers are ! 
. .obsolescent-- : L; regard 

breakfast television as 'an le <jf . 
the least risky ■ commercial 
propositions' • ever ' . .under* 


language service 

v speakers. HV compaaies will 

: have ;ta. provide money 
..the service but are unlikely ffi 
get , much "in the way -of. % 
return! since - de m and .. for 
advertising , may be limited. 
The BftC has to .. provide Iff . 
hoars’ .broadcasting a .week 
The. whole vsystem :of broad- 
casting to Wales in WeUb^ fa . 
' to -be - reviewed in three 
years’ time. ;; 


in g dilemmas. / On what nights, . ■■ 
for example; is it- going to place-, 
its major audience grabbers ; 
and against ; what ITV. shows? 
For tiie two ^London stations,' 
one holding the weekend fran- 
chise and due the - weekday, 7 
-whether - Mr Paul -Bonner, the 
channel’s controller, and Mr 
Isaacs choose Saturday hi^it or > 
Wednesday : for their most 
-popular offerings is a crucial 
point ’ : ‘ 

Inevitably : . these . problems 
.will be ironed 'out, but not with- r 
out some blood-letting on-one aT - 
baEh sides. If It reglly auhe to' 
the crunch the IBA -has- the 
power to ten companies to offer 
shows. -It is "sFfihe pomthow-- 
ever, whether.lt has- the- power • 
to- stipulate price.. - 1 


c Meanwhile, the . one tb mg We - j 
do. know; is that there will be ; . r '.r-.; - 
a , nightly one-hour news’, apd - • 

features progrknnne to be^pri^ 
sented by.: :3TN.' which .will faLV ; : 


■tot years and which it has been;; -v--/ 
forbidden by television . cent- r : : - 
pany- programme control) ers : 
jealous of their .own time and • - . 

by documentary..; departments,.' ' 
'eager to. keep ;-T^ : off -j \ , 
patch. ;’ ‘-V-. -j’’.-..!' [. .. ■ -. jq -j 

remains .to. be ’seen. : But if CBS 

can ^make-«0^DMniites:a top tea ;;V, 

show in the , - <■ , : < \ 










21 


- •! 

& j 

w* t 



Si 


.by* 


M|«s rfagati is. -^^Ob^ously; 
talented, znatijra wjth 
.a string of 'w^J2^ J^^^ a£{{i 
^European prizes .to Accredit. 
.Her Ptux^H-;Jto^-<tec4taI on 
Monday .wa&^a^tfHQ^'di^lay 
Tier best qiial^ie?; ' setKius, plain 
i n t erpretati o^^played '.With an 
-pvan, steady, tajin, ample 
jqne andLa left .i^nd -of impres- 

//cbnatpriqy. -of': at ‘•-certain 
jtetnd l is 1 jodt always-' 'welcome. 
Tb© interiintion^ifeeie esused 
fay ;-the#fi^^iring so] bistS were 
iosr /ln;-;B4iss ■ Nagata’s "homo- 
genised approach. For her, an 
E natural was always the 'same 
pitch; whether It fe the fifth of 
an.'A.majpr chord or the leading 
note of an/F mirier scale. She 
could have, been 'playing on a 
fretted ’'HBngerboard for the 
variety of ' harmonic emphasis 
she 'found. This stiff, unaware 
intonation made-.. ' both ■ ; Beet- 
hoven's E flat Sonata Op: : i2 and 
Brahms' A major Sonata Op. 

'Coveiit Garden 


RD JOSEPH 


vioo. deeply uninteresting*' . 

■Unfortunately, Hiss Nagata 
.tunes' her instrument appre- 
ciably sharper than 'the piano. 
This is a reasonable ploy when 
playing concertos, since the solo 
violin needs some additional' 
brightness in order to ride - over 
the orchestral strings. But it is 
.hardly, necessary for a duo 
.'recital jar a space’ as confined as 
the Purcell Room and it 'gave 
a tense," nervous finish to her 
otherwise disciplined playing. 

Within the limitations already 
listed, Fatire’s Sonata in A fared 
better than either the Beethoven 
or Brahms. The soloist found a 
fresher . response to;- the music 
and. .seemed to. be. listening to 
her . pianist, . the - dependable, 
interesting John "Blakely, rather 
more often. j'Bartok's First 
, Rhapsody: was confidently dis- 
patched, full of the right down- , 
heat ediphairis. - if : without' the ! 
lilt and skjltishness "'this essen- j 
Hally- dance music. requires. 






■ » ' 


■ V * ' ’ s. /t4l 






Roy Marsden and Polly Hemingway in Airline 


Hoffmann 

by DOMINIC GILL 


Television 


/Offeiftach'sLes Contes d ’Hoff- 
mann is an opera, nufde from 
first : to. last— and ^therein ■ lies 
4br /Claim to fame; as well as its- 
only claim op our interest— of 
the purest, unalloyed kitsch: a 
work -.jHrhteb in nearly every 
reject . adopts the: manner 6i 
fine art without preserving “any 
of its; suhstance. Like all good 
Idtsdii/the piece can be stirred 
up; end j reassembled in almost 
any ijbeni without affecting . its 
..baric p^tpre or purpose: . a cut 
here- ah addition there, Giulietta 
befarerAntonia or vice versa — 
who hares jbout the difference? 

" .A.l/hotiow' fun-toy, brightly 
. paii^;-the equivalent in 19th 
cebtujry^erms of the second-rate 
Brhadway "musical, Hoffmann is 
'fixnj-- "and- in one or -Tvo pages 
ar^iallv delightful. .But j won-, 
der lf it's not ai feasfrionefeiv- 
able ■ that ' fhe'.. 1 same= opulent 
iresourpes might be even ^mdre 


rewardingly applied to a really 
. first-rate musical like Soufh 
P.acific or West ' Side Story— 
both of which at least contain 
a good deal more than Hoff- 
mdrm> one good tune, and are 
better theatre? to boot? 

. Covent . Garden’s latest' stir 
. of. the Hoffmann mixture was 
-reviewed -/liere - in some detail 
last Saturday by Max Lopp.ert. 
‘Having missed' that opening 
night. -■ on' Monday Placido 
Domingo strode into the lead- 
ing part. If almost any assump- 
tion. of the role .were not equally 
plausible. Domingo’s would be 
fhe perfect fit: a fall and virfle 
Latin playboy with a splendid, 
muscular tenor voice. There are 
sure -to be 'plenty of tenpenny 
pieces to bank during, the run: 
lor while Domingo was on stage, 
it seemed that every lady in 
. the house sat with little red 
binoculars to ’ her eyes. 


Better serial crop from ITV 


by CHRIS DUNKLEY 


liiisiijand idaiice in Berlin 


V One of thedefights of visiting 
Berlin is to dahble in the city's 
run .df a.n^a^Jtmd dance pro- 
- season at the. 
•’IhKdKrites.Westens began with 
a • Kari'- Vibabh : production of 
. Pad ■ Fra»> fcw* *a,> 

Bern's first ^genuine . operetta; 
in 2899 and ' {b nostalgic addition 
to . the :Prnriri4n' ; Art Exhibit. 
There's a . Street named after 

- Paul Linke btf ^e very bank 

• of ‘ the Spreetitthe- show’s .top 
I rsong, “ Berliner tuft,” Is . still 
- on es ery-mu ricJb ver*js lips:. and 
•i .Idte composer iff>s known and 
^.bphoiiTed' her« \as- the; Strauss 

'iFaraUv in .Vienna, Gilbert and 
IfinUmm. in "London- George M. 
’Cbfcdh' • nr-;" New- York, and 
" Ja^e^ Offeribach in Paris. '' 

• ’l^Picturejan operetta midway 

- ' '■ iSfibrge^M^liifs -silent 

one-j-eetere f or ’- Jules^ Verna’s 
ftritaries iapd a leggy revue at 

your 

vision a.; couple, of : yokels 
. 7 J$tedmgjan the moon . and meetr 
ingrtiie l^dy of ..their dreams is 
.^Jkr : from Frew Luna — in 
fa^:'«ipce fata. Linke learned 
tiis'.' trade . while, conducting ; m 
Paris' . at the .FoIies. it’s an open ; 

- questjOTVwbethef Linke’s- Berlin; 

inffu^ncetf bis ■’French 
.coneagues hi tiie^ ^ long run. ' . 
i^esebtly, "the^ ; Theater des 
Womens fe- ^uest-h'dsting the 
Bubbling 


Broum S«par,. winding its way 
across. the : continent, from 
London and Paris to Berlin, 
iWlenna and Den Haag. Then. 

at the end of- January, comes 
. an all-German production of 
, Rodgers and ,• Hammerstein’s 
1, ■ Ofctohamo.’ The^ enthusiasm that 
has;, -greeted i the .\jnerican 
. musical -comedy Is most impres- 
sive. and it's gnrvwne in such a 
...manner as to spill over to 
' German theatre as- a whole. 

Another brt of sunshine on 
the horizon is a new cultural 
'ojieijomenon known as the 
International r Ballet - Centre 
Berlin, the : entrepreneur of 
. which is one Michael Tietz, a 

- solo dancer ' at the Deutsche 

. . Oper Berlin with sugar-plums 
' dancing in his head.. • > 

Tietz organised, a .Gala-Balle't- 
Evening just;'. -’.before the 
■holidays with' som& of the 

- brighter '.names, in .. the ■ field 
engaged for two evenings at the 
city's Congress .Centre, stars 

" like Retfa Sbeta, Peter Breuer, 
. Joyce- Cuocoi Coleen -Scott. 
Christopher •. Boatwright. 
-Monique -JanottS, Yvonne Ven- 
drig; and many others.- The 
.shows were nearly sell-outs — 
7,000 baUet fans applauded so 
hughtily that -tiie gala attended 
into the .wee - hours. A 
Tsclwikoihky-Abend is -next 

RONALD HOLLOWAY 


With the start of this new 
season we may have reached a 
watershed in British television 
drama. Last season ITV proved 
with Brideshe ad Berisited that 
-they could equal and outdo any- 
thing the BBC might manage in 
the way of costume drama even 
though the art of adapting from 
respected literature has long 
been seen as one of the BBC’s 
strangest suits. Certainly BBC 
adaptations last year such as 
Bread Or Blood and The His- 
tory Mck were more impressive 
than their original drama 
serials which included such 
notable horrors as The Boraias 
and 1 Triangle and only one 
triumph in Private Schulz. 

Now, three weeks into the 
new season, it looks very much 
as though ITV is proving that 
ki addition to maicbing BBC 
standards in high quality adap- 
tations it can leave big sister 
standing where original serials 
are concerned. You could argue 
that the reason is that apart 
from Ennal's Point the BBC 
simply isn't doing any original 
serial drama. 

Gullirer In Li/lipiir. Fame Is 
The Spur. King's Bowl and The 
Bell are all adapted from books. 
Moreover the settings are his- 
torical in every case, the first 
being 18th century., the next 
two Victorian, and even the 
Iris Murdoch dramatisation 
looking quaint what with vast 
roll-ons and little Messerschmitt 
ears not to mention the manda- 
tory steam-train sequences. 

Memory suggests that over 
the years ITV has been as bad 
as the BBC at producing serious 
original serial drama with con- 
temporary themes and settings. 
Discounting soap operas (and it 
looks .as though that means dis- 
counting EnTwrl’s Point where 
gossip about adultery looms 
larger than the lifeboat station) 
what comes to mind? Maybury 
from BBC2 last year, beyond 
that Tcl/ord’s Change, and then 
much further back The Glitter- 
ing Prizes and such sixties 
series as Z-Ccrs. The Plane 
Makers and The Poirer Game. 

These last two were crea-ed 
by Wilfred Greatorex, the very 
man who is responsible for 
Airline: the Yorkshire Tele- 
vision series which, with Muck 


And Brass from Central (ATY 
as was), leads ITVs drama 
series line-up for the new 
season. The others comprise a 
fresh batch of Thames's Minder 
and. in my view. Shine On 
Harvey Moon. I say in my view 
because although promoted as 
a half-hour comedy series it 
looks much more like serial 
drama than sitcom. That makes 
four original series from ITV 
against three adaptations on 
BBC1. and orlfe adaptation and 
one soap opera on BBC2. 

The most fashionable period 
for drama at present is clearly 
the 15 years following World 
War Two, the period into which 
not only Airline. Shine On 
Harrey Moon and The Bell all 
fall, but also Tim Preece’s 
single play on BBC2 The 
Combination %'hich was far and 
away the best bit of television 
drama so far this year. In a 
poor play the characters will 
make statements about life in 
the same way that a poor 
novelist will rely on assertion. 
In a good play the characters 
may talk about their breakfast 
or the weather but their actions 
and relationships, and very 
tone of voice will embody 
what the playwright wants to 
say. 

All that Preeee wanted to 
convey about the general was 
contained in the particular: 
•he state of the country, the 
condition of men exposed too 
Iona to war, the effects of a 
divided education system, the 
benefits and horrors that came 
from do-gooders, the joys of 
the countryside and " the 
suffocation of provincialism. 
All this was communicated 
implicit!' yet none-the-less 
vividly in the seemingly in- 
substantial story of two Jfl- 
y ear-old boys from Church 
Stretton spending the long 
summer holiday between 
primary and secondary school 
in playing, arguing, fighting, 
eating beans out of a pur- 
loined tin. and attempting to 
reach London by bicycle to 
visit the Festival of Britain. 
Thanks to Preeee and director 
Peter Hammond it was a 
masterly exploitation of tele- 
vision of a sort that you see. 
if lucky, once or twice a year. 


By comparison all the drama 
serials, not even excepting The 
Bell, are doggedly literal. Of 
course that may not be at all a 
bad thing, since It is really 
another way of saying that they 
rely for much of their appeal on 
powerful narrative. (Ironic- 
ally the work in which narra- 
tive drive is of least importance, 
Gullirer, also happens to be the 
BBC's best.) One of the main 
reasons why ITV at present has 
the edge over the BBC is that 
anyone who reads widely 
already knows what is going to 
happen in all the BBC works 
whereas Airline. Harrey Moon. 
Muck And Brass and even 
Minder all hold out the entice- 
ment of going back to discover 
what happens next. 

Considered in terms of that 
wide sea of popular fiction 
which, as I was saying here last 
week, television's detractors 
like to pretend does not exist 
since They wish us to believe 
that print starts and ^ops with 
Tolstoy. Airline is one of those 
Gavin Lyall sky-pirate yarns, 
even down to the identity of the 
heroine — a battered but beauti- 
ful Dakota. It still has all the 
Greatorex hallmarks though, 
preoccupations with the often 
illogical distinction between the 
immoral and the illegal, the 
effects of business upon private 
life, and the more gratingly 
realistic details of commerce. 

Muck And Brass by Tom 
Clarke which dramatises the 
intrigue and corruption behind 
the redevelopment of Slaiterley 
city centre is a bit like a story 
from John Braine in a black 
mood combined with Arthur 
Hailey's obsessive detail. I 
cannot say I fully understood 
last night's bajfiingly compli- 
cated shennanigans over the 
football ground yet I am sure 
Clarke never cheated on the 
plot. In a large and consistently 
good cast there is nobody to 
sympathise with; yet the first 
two episodes have been utterly 
engrossing, thanks to Clarke 
and to superb technical work 
particularly in the editing. This 
may well turn out to be the 
season’s bert serial drama. * 

Shine On Harrey Moon 
which. like Airline . follows the 
fortunes of an NCO just 


ass 3962- cc 57S 6S£S_ 

‘^nrtkn B39' 3P92-B3S 

*u r JO. Thur* * 5 « MJtj.OO. 
Qf -S-KW fl«U SWBT 

ft Ml EVX Actor of -Year 

-QUINN -Actress Btftr Wjr. 
W A LESSER COO. FLAY 

S. BSS. 6*04- CC J7S 6233 
.'10-41. - Info, - B38 5332. 

ALV5HAKSPEARE COMPANY AS 

XT. Sean -araf twit 7.30 
"Nwct :j»erl LA ROKDE 25 Jan Wf 
Hs. sexoai nauuonsmps apri Is pot 

UjiLi'UC = for eiuMren’. P«*tol 22023- 


Drury LAKE. Tmrcrre Royal. OC asfi 
8108- Openfns Feb A 'previews Fe* 1. 
2 * 3. AN . IVENIHG-S INTERCOURSE 
Witt, THE WIDELY. LIKED BARKY 
-HUMPHRIES, for W weeks only. Per 
aow- laWh later. , Bogk now. 

DUCHESS. s''and L CC 06 8243. Em B. 

Wed 3. -Set 5.30 *S,Mr 8.30. Richard Todd. 
' Derran Nesbitt and Carole Mowlam In 
THE BEST THRILLBB FOR YEARS THE 
BUSINESS OF MURDER. - 

DUKE OF YORK'S. 836*. SI 22. CC 836 
9837. On sales -.379 GOBI . Evs. 7.45. 
h price Mat today . 3. Sat 5 * B4S. 
SIMON CALLOW -ana . PATRICK RYE- 
CART fn - Tie 1 Basiuy - leautodm of 
BALTHAZAR B by J.. P. ■ DONLEAVY. 
Enjoy pre-show sUBper ' at .Cafe Charts 
, * 1 hit for only 1 £7.00.' W '930 4740. 


COMBWY THEATRE. S CC,?30 2S7B.. 
Cn» Tatea 379-&P£1. Mon-Frl 8.00. .Sat 
S-13- Mats. Than 3. DB 3.1S. Pmm 
EJ-SP- fEB.-Sfr toot table IDS. c *| 
STEAMING by NELL DUN NT VOTED 

COME0Y 07“ THE YEAR. Swot Awards 
*s*l : OEORE3M* -KALE. Enioy ore-show 
V&ZtF “ Vaf* Encore plus tkt >or only 
MJM,. T*J . BiO ■ IBM. RED CROSS 
APraALFOR-; POLAND. Special late 
nl 9 ht port 11.30.- tin. Tnes. Feb Z. 

tQVEKT GARDEN. 240 1066 5 lGffde«; 1 
tC.-US 69031. 85 amphtseato | 
auaa ter all hrom 10 am oe the . 

day of «rt jw royal ballet. | 

Tonlt, - tohjor,. *'. laon at .7,30. Manoo. j 
Jamor at 1.30 * Sat at 2.00. Ext™ 
ai at pu i g Beauty CRMucticnii 
Jot OAP's & . Children i. Sat «t 7.M. 
La* Pifim i if t. My Brother, My 
SHtarL EUt SmtUlWII. THE h pYAL 
Pf «* fi t A. Tun at 7.00. Les Cootn 
fiiwamt. • . • • ^ 

CRITERION. S 630 511 6, CC 370 6565^ 

hiua .335 3?S 2- Mon-Thyrs 7 JO. 
rn and Sit £0 *fld .*8.65-' Nofiitnaied 
■45 COMEDY OP THE YEAR W1 SWET 
COM “ T T 


FORTUNE THEATRE. 0T-8S6 2338. S. 
Russell 5L. - Covent Garden. JOHN 
'BAR DON as the legendary MAX MILLER 
in HERE'S A FUNNY THING. By B. W. 
Shakespeare. Mon To Thors 8 pin. Fri ft 
Sat 6 &' 9 pm. For a I'm lied season. 

> £2.50. £3. SB. £4.50,' £5-00. Lowest 

ticket prices In Wert “Bedl 

GARRICK. ' CC 8 36 4601.- Eva- .8. 
Mats Wed 3- Sat 5 A 8. ._l1th 
HYSTERICAL YEAR OF TOE LONGEST- 
RUNNING COMEDY IN THE WORLD. 
NO SEX PLEASE — WE'RE BRITISH. 
2 hours ol non-stoo laughter. Directed 
bv Alien . Davis. Group sales Bok Office 
379 6061. Credit Card bookinns 930. 
0731 . ' ' , 

GLOBE. S. CC. 437.1592. 439 .677016779. 

WILLIAM RUSH TON, JOHN FONttJNE. 

. MADG5 RYAN and PETER. JONES In 
PAS5 THE -BUTLER by Epic Idle, directed 
bv Jonathan Lynn Red . Price . Preys . 

Tonight/ 21. 22,- 23. 25 Jan. pr 

:6 « 7 . 50 . Mon-rtiur M.O. Fr 
6.0 A 8.45. Gnsuo Sales Box 
379 8061. 

GREENWICH. S CC 01‘»8SB "7755. 8yeir- 
-InB "JL Mat Sats 2.30. Last. Week 
Sheridan's THE SCHOOL FOR SCANDAL 
From Jan 27 SEASON'S GREETINGS bv 
Alan AYdabooTT. - ■ 

HAYMARKET THEATRE ROY AL.^ 9M- 
9832. Direct from Broadway return to 
London ter an evening with ■ DAVE 
- ALLEN. Eves Mon-Sat 3.0. Due to 
• unprecedented demand tor tickets sumo 
extended . but most terminate Feb ,6. 

HAYMARKET THEATRE ROYAL. 9M 
9832. Openings February 11 at 7.0. 
Reduced price previe ws from Feb 9 . 
SubsAygi 7.30. Mats Wed 2.30. Sets 
4JR PENELOPE KEITH. ANTHONY 
QUAY Li. TREVOR PEACOCK in 
HOBSON'S CHOICE. A comedy by Harold • 
Brlohouse. Directed bv Ronald Evre.- 
Adva nce box office open eow. ■ 

HER MAJESTY'S. 930 6606-7. CC* 930 j 
^«2S-6. Gro sales 379 6061 . Evea 7,30. 1 


LYRIC. S- CC. 437 3636. Gn> bkn 379 
6061. Eves B-0. Mat Vied 3.0. Sat 5.15. 
RICHARD BRIERS PETER EGAN Richard 
PoarjoB.' Pat Haywood. Alice Krlge in 
BERNARD SHAW'S ARMS AND THE 
MAN. Alice Krlge Mew Prnndtirg New- 
comer SWET AWARDS 1987. Enioy 
pre-show winner at tse Cate Royal & 
m ter only £8.95 hid. Tel 01-437 S09Q. 

MERMAID TH-. Bladdnars. EC4. 01- 
Z36 5563. CC.' 01-236 5324. 

WORLD PREMIERE. Prev 5 from Feb it. 
Ooens Feb 17. ALEC McCOWAN ir. THE 
PORTAGE TO SAN CRISTOBAL OF AJL 
Adapted lor the stage by Christopher 
Hampton from the novel bv Gebrse 
Steiner. Directed b* Jsnr. Dexter. 

NATIONAL THEATRE. 5. 928 2252. 

OLIVIER tope d staaei tonT tamor 5. co 
THE OftESTELA In Its entirety tplease 
be prompt ' lor S pm start — regret late- 
comers must sand 'til inbnaii Extra, 
perl tamer 11 Am HIAWATHA. 
LYTTELTON (proscenium stages tsdav 
3 00 i law ju-Re mat* 6 7.45 ON THE 
RA2ZLE bv Tom Stoppard. To row 7A5 
THE SECOND MRS TANQUERAY. 
COTTESLOW (small auditorium — law 
price tktsl tumor. Fri. Sat 7.30 SUMMER 
new play bv Edward Bond. 

Excellent cheap seats dav of serf all 3 
• theatres. ABO . Standby 45 mint before 
1 start. Car park. Reitaorant 92B 2033. 
! Credit ca-d bkgs 928 5933 
i NT aba at HER MAJESTY'S. 

■ NEW LONDON. Cd. Drury Lane. WC2. 
] 01-405 0072 or 01-404 4075. Eves 8.0. 

TuesBi Sat 3.0 * B.O The Andrew Lta*;- 
Webber-T. 5. Eliot award wlimmg musical 
i CATS. Additiantl Bos Office iat oortral 
theame prlces». The i icket Cenve 
I next to Wyndham's Theatre. St. Martin's 
Court. Charing Cross Rd. Group fcoa~rgs 
01-405 1567 or 01-379 6361. Aopl* 
! dolly to Box Office tor returr-j Perscoai 

MOTION^ PLEASE ^E D 'p°OMPT. ’tan 
I open 1 hour prior. 

I OLD VIC. 928 7615-7-8- CC 251 1821. S 
i TOAD OF TOAD HALL. Da.h 6.4o. Mas 
! Wed 4 Sat 2.30. Rumms until Jan. SO. 
i Seats still atai'abl e. 

j P 5 6 ^c4 rt C S rt ? t ^ ; e 6 |^93f cfj? 
tfEii^Y^'li.SSSi’E S“y C fet5o3J 

S^^I 0 Y^P^°7 V £I. 

2 45. Sats 5 0 6 8.0. P' tes £640 

i ^5 . oo. £3JQ, £2 00- Season erJi Jan SO. 

i PHOENIX THEATRE (Charing Cross Roasj 
01^36 2294-8611. Eves BO rr. & Sat 
MiliMtMO' TIME! THE GR^JT 
I NEW ORLEANS MUSICAL. ONE MO 
I TIME IS A GOOD TIME! Group 5a.es 
I 01-379 6061. . Raia 'O'CCJtm ai-^no 
0200 ter mstanct coiermed CC 0‘S— 2m 
j hrs personal service available. 

: lit?: 


i 5?t Mate 3-0. FRANK Y1NLAY to tne , 01-B36’,3«2. 37^ 6DM. 

Nations' Theatre* .mufti -^jra/O ?« > Prestel Wto 1C e» Mar - r -w • ^>C ■ 

intcmanonal Smash Hit AMADEUS by I Mat Wed 3.0. 5at S. jO 4 8 t5. ROYAL 


IitoSlktwn*l Smash Hit AMADEUS*, 
PCTER SHATTER. Directed b» PETER 

HALL. 1 _ 

KINGS HEAD- 226 1916. Mon toUt 
Dnr 7. S»»o*v 8. PLAYING THE GAME 
Comedy bv JeWrov Thomas. 

LONDON PALLADIUM- fll-437 7X73. 
MICHAEL CRAWFORD In the Broadway 
M y ileal BARNUM. E«9S 7 JO. Mats 

. 'jjmA and Sal 2.45. Use the Barnom 
HffHllte 01-J37 2055,.01-7S4 8961 ter 
■ Mu.t credit card reservations 

l5* ’ouSinrUltt^A .«JOHT IN OLD 
PEKING the $^0D1N. E»rt 

7.30. Thur * Sat^Mat 2J0. 

LYftiC STUDIO Hon to SJt B pm THE 

J^^ of wilbbrforce hi. 


5HAKE5PCARE 

RassrU s new con^dvjraUCATl NG RrtA- 
Comedy of the Year SWET Amc. -s .98 3. 

PRINCE EDWARD. DM Cornpxn i St. ^rr. 
Rice and Ar.erew iJovd-Wf-ser ^ ^YITA- 
D- retted bt Haraia 

Mats Thors fec«snomv prce arO Sj. lu 
Era per 1 ends 13.1S. 5 


PRINCE OF WALES TMtATRL ?30 |SSK 
Credit card acsvnss 93C 3S -6. PAUL 

n^MACIC. Mpn.Tte.rs 

Fn« 7 30 Fn are sa: S.ZS a r e S CO. 

“n i79 V35^MUST ^ND FEB 
6 . UNDERNEATH THE ARChlSS. A 
music** of the Fla ■•as*'’ 6 
Opens Marsh 6. P.-exiff"* f** *■ 


• 2 TG6 - Ewn'nffl 1 
B.O. Mar Wed 3.0. Sat 5.15 and 8.30. ■ 

: EDWARD fax. ROBIN BAIUY. JAMES ! 

GROUT and PRUNELLA SCAlS “ I 

• QUARTERMAINE'5 TERMS. A new plav I 
I by SIMO N GREY. Directed bv HAROLD j 

PINTER. Last 5 weeks. Ends Feb 20. ! 

' RAYMOND REVUEBAfl. CC 01-734 1593 ! 

At 7.00. 9.00 and 11 00 .pm. Open I 
. Suns. PAUL RAYMOND presents THE ! 
1 FESTIVAL OF EROTICA. FaDUlOUS new I 
1 BSte- E^autiiul new girls. Sanaa tlontl new 

■ thrills tor 1982. 25th sensational Year! j 

ROUND HOUSE. 267 2564. Direct tram ! 
Sap Francisco PICKLE FAMILY CIRCUS. | 
I LAST WEEK. Mac. today tomor 5.00. Fri i 
| & Sat 5 00. Eygs B.OO. 

; ROYAL COURV S CC 730 1745. Prews 
from Feb 4 at 8.0. OPERATION BAD ■ 

• APPLE Or C F. New man. i 

: SADLER'S WELLS THEATRE EC1. 637 1 
1672 1 675-3856. Credit cards 10 am to • 
: 6 om 01-278 0871 837 7SC5. Grp , 

sales 01-379 6061. 24 hr Insanely con- I 
6 rmed_ reservations 200 0200. FAMILY i 

Llovd-Weeber . JOSEPH & THE AMAZING ] 
TECHNICOLOR DREAMCOAT. Mon to ! 
Sat 2 30 & 7.30. Tkts il JO to E7. 

Spec rates tor children. Mon to Fri. 
Spring Opera 8* Dance Subscription 
season. Tel. 01-278 0855 for broenure. 

. AMPLE FREE PARKING after. 630 P m. 

: SAVOY. CC 01-836 8888. For Credit 
Card bookings ring 930 0731 <4 lineu. 
Mat Thors 3 00. Sat 6.00 and 8.45. 
9.50-6.30 Sats 9.30-4.30, Eves B.OO. 
GERALD HARPER. SYLVIA SYMS In 
FRANCIS DURBKIDGE'S Hit Thriller 1 
HOUSE GUEST with PHILIP STONE. I 
OVER 2SO PERFORMANCES. j 

SHAFTESBURY. CC. Shattetburv Ave. j 
WC2. Tel Box Office 856 6596 or 836 
4255. Credit card bfcgs 930 0731 14 • 

' lines' >9.30-6.30 Sats 9 30-4. JO' A 
01-379 6565. MARTIN SHAW. SHEILA i 
; BRAND. THEY'RE PLAYING OUR ! 
1 SONG. OAPfc £4 I Wed mat cmlvl best ; 

. scats. Students stanebv £4. Evgs_e.O. 1 
Mats Wed 5.0. Saturdays 5 0 * 8.30. < 
Book anytime dav or night including . 
Sandavs and holidays. Pnoita 01-200 I 
0200 124 hour servicei. I 

; ST. MARTIN'S. CC 836 1443. Evgs B.OO. { 
Toes 2.4S. Saturdays 5.00 ard 8.00. | 

' Agatha - Christie's THE MOUSETRAP. . 
Y.'wld-s longest ever run. 30th Year, j 

■ SORRY. No reduced prices too nr any ) 
scurce but seats boc'xabtc from £2^0. j 

; STRAND. NO SE* PLEASE. WTRE | 

. BRITISH HAS MOVED TO THE GARRICK i 
T HEATRE, ' j 

STRAND THEATRE. CC 01-B5S 2660. j 
01-836 4143. Reduced price orevsFeb t 
1ST. OP ENS F eb 3 ar 7 OQ. NY R EE \ 

• DAWN PORTER- ROY OOT8 p in i 
MURDER IN MIND. A Thriller bv 

■ 7ereece Feeiy- Jwes Mon-Frl B.O. Sats [ 

5D 6 BD. Ma te-Tnurs 5.J . ; 

‘ TALK OF THE TOWN. CC 0T-7W 5051. j 
Fcr res«rva ttgnf— or on entry— London s . 
greatest nrebt out. From 8 Dm. 5 HOURS ■ 
Sf top entertainment. THE TALK | 

. OF THE TOWN GALA GALAXY REVUE 
<5.30 pmi. ANITA HAnifm ill pm*. . 

• Dinner. Panting 3 aar.c t. ; 

VAUDEVILLE. CC 0!-8|6. 9988. EyM ; 
a Wee -ats 2.4S. 5a3 5 8 8. GORDON ; 
JACKSON In AGATHA CHRISTIES 
I CARD5 ON THE TABLE- 50HHY. no • 
reduced prices .'ram *"7 source but ; 
1 Mb ffeouable Iran £2.50. 

VICTORIA PALACE- CC 01-828 4735-6. : 
05-S34 1317. EY3J j-30 Mato Mon. 
Tu«. Wed. Tliul i Sgt at 2 ■! 5 • 
JONN INMAN. ARTHUR LOWE, IAN 
LA VENDER <s MOTHER GOOSE. Groap 
. sains c:-379 5061 5 Tektdata 01-200 j 
0200 t24 hpunl. 


FINANCIAL TIMES 

PUBLISHED IN LONDON & FRANKFURT ' 


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Old Red Lion, N1 


Three Women 


bv ROSALIND C.ARNE 


demobbed from the RAF. has 
a bitter-sweet flavour Dot unlike 
that in. Leslie Thomas's books 
and a similar sense of the 
comedy of everyday. life. What 
is not yet clear is whether, like 
far too many situation comedies, 
the episodes will merely 
meander around the characters 
in an arbitrary way or whether 
Marks and Gran have developed 
a proper continuing plot.- 

Gullirer is making excellent 
use of chromakey, glass matte 
1 1 think) and other techniques 
to achieve the necessary dis- 
parities between Lemuel and 
the Lilliputians, but more im- 
pressive than that it is retaining 
in Barry Letts’s dramatisation 
a remarkably high proportion 
of the satire. 

Jtinpr’s Royal is the everyday 
story of a generally nasty Vic- 
torian family involved in com- 
merce — a sort - of landlubber’s 
Onedin Line with steam trains 
and landaus instead of ships 
carrying all the conviction 
which is missing from the 
characters who might have 
stepped straight out of Boots* 
Subscription Library. 

* * * 

If Kenneth Griffith does go to 
the U.S., as he says he might, 
it will mean an irreplaceable 
loss to British television. His 
BBC2 programme on Saturday 
with its typically provocative 
title. The Most Valuable 
Englishman Ever was a splendid 
example of his extraordinary 
talents. To describe it as a 
dramatised biography of Tam 
Paine would be like describing 
The Messiah as a religious 
song. 

As with Griffith's programmes 
on Napoleon and the Boer War 
this one fizzed like a Catherine 
wheel. Jobbing out evidence of 
a bewildering combination of 
characteristics: acting taient, 

bile, passion, compassion, fury, 
love of liberty and place and 
people, contempt for small 
minds, pity amounting to tear- 
fulness for the weaknesses of 
mankind, awe at the greatness 
of mankind, conceit, single 
mindedness, and not least mis- 
chief. Above all his delivery has 
the rabble-rousing hwyl of a 
revivalist Welsh preacher. 


Childbirth may hring joy. It 
may bring a terrible sense of 
loss. Or it may.- in the words of 
Sylvia Hath, “create corpses.” 
Her searing dramatic poem, ex- 
plores each of these possibilities 
through the minds of three 
women, before during and after 
their stay in a maternity ward. 
Sylvia Plath herself had two 
children, and she also miscar- 
ried soon after her marriage to 
poet Ted Hughes. So in spite of 
the form, and the quite distinct 
characterisation, it is clear that, 
more than in most dramas, we 
are listening to the several 
voices of the author. 

The play was written to be 
read aloud and was first heard 
on BBC Radio in 1962. There 
have been several readings since 
then, including a recent produc- 
tion by the Royal Shakespeare 
Company. Now director John 
Abulafia has made a rare experi- 
ment with active staging, with 
some interesting results. 

He uses three blocks against 
a folded green screen, unexcep- 
tional costumes, white hospital 
gowns and an oblong sheet 
spread across the centre floor. 
Gestures are carefully latched 
to the veibal mould and move- 
ments are largely limited to the 
change of mood between the 
speeches. The text expresses no 
direct interaction between the 
patients, but there are nice 
directorial touches here, as 
when the student who has sent 
her child for adoption casts a 


final longing glance towards the 
happy mother of a healthy boy. 

Crucial moments stand out. 
like the latter's agonised labour, 
knees splayed, hands clenched 
around the chilly fabric, as she 
rocks her tortured body. Indeed. 

' Daryl Webster moves better 
than she speaks and I was sadly 
disappointed by her failure to 
communicate the tough kernel 
of emotion which the part 
demands. 

Only Kate Versey, as the 
secretary who endures three 
miscarriages, is unfailingly 
convincing throughout.. . Her 
words pierce to the heart, 
lingering with chill reverbera- 
tions at the end of each mono- 
logue. She soars from colloquial 
ironies to a frenzy' of bitterness, 
gliding imperceptibly into that 
love affair with death which so 
tragically destroyed the author. 
Her part is closer to the Sylvia 
Plath we remember most easily, 
angry, mocking, and desperately 
self-destructive. 

Susan Penhaligon plays the 
third character, the youngest 
woman who offers her baby girl 
for adoption. She is outstripped 
by the requirements of the 
verse, though a sense of her 
potential glimmers through as 
she bewails her immaturity. 
“I wasn’t ready /I had no 
reverence." she says. Too true, 
and a vicious circle for all but 
the most exceptional young 
performer. 


Festival Hall 


Strauss 


by ANDREW CLEMENTS 


Never willing to do things 
by half measures, the Young 
Musicians’ Symphony Orchestra 
came up with a programme of 
Richard Strauss on Monday 
evening that could have been 
designed to sift the real 
Straussians from the fellow 
travellers. Everything that is 
bad about the composer was 
demonstrated in the Festival 
Prelude • and the Alpine Sym- 
phony, while the Four Last 
Songs were allowed to work 
their familiar confidence trick 
on a willing audience — are we 
listening to beautiful songs, or 
to a beautiful voice artfully 
exploited ? 

Yet the interest in this per- 
formance of the Songs lay in the 
soloist, Josephine Barstow. A 
singer who so successfully en- 
compasses both Salome and 
Arabella on stage ought to fit 
nicely into this work, but so 
much of Miss Barstow’s impact 
lies in her dramatic presence 
that one wondered in prospect 
how the voice alone would sus- 
stain this celebration of 
sumptuous tone. 

The slightly acidulated sound 
of some passages in the event 
was a refreshing change: other- 
wise she moved elegantly 
around the melodies, applying 
gentle and intelligent stresses 


here and there and never 
attempting over-saturated, in- 
dulgent phrasing. The orchestral 
accompaniment, an aberrant 
violin solo in “ September." 
apart was deft and sympathetic. 

In the more fantastical part 
of the programme also. James 
Blair guided his players with 
enormous enthusiasm. The 
Festival Prehide is almost a 
lovable rarity, with its grandiose 
organ introduction and 10 
trumpets, and a big C major 
tune that bears more than 
passing resemblance to Erahm-.’ 
first symphony. But the Aljn.c 
Symphony remained stiil 
beyond the pale as far ss irn.i 
steadfast non-believer vras con- 
cerned. 

The justification fnr writin? 
a piece of music about ciimhinc 
mountains seems even less than 
the irrational obsession with 
climbing itself: what can such 
music mean, unless, like- 
Mahler’s third symphony :t 
attempts to transcend its pan- 
theistic beginning* and reach 
towards some more generalised 
statement ? Such a concert, in- 
valuable in its way, shows :h-i 
importance of Strauss to 20th- 
century music in demonstratin; 
conclusively the path that com- 
posers could not in the future 
take. 


Indian art for V & A 


The Victoria and Albert 
Museum is mounting in the 
spring an exhibition to rival 
Grea; Japan at the Royal 
Academy. It is The Indian 
Heritage and concentrates on 
the courts of the Mughal 
Emperors of the 16th century 
and later. Over 500 ohjects 
will be on display, borrowed 
from many collections, and 


including paintings, jewels, 
textiles, and weapons. .X related 
exhibition in the Library con- 
centrates on paintings by Enti.-h 
artists on Indian life b-Hween 
1760 and I860. At The branch 
of the V & A at the Bethnal 
Green Museum there ‘.vill he a 
display of Indian playing card;. 
The exhibition runs frem Apr:: 
21 to August 15, 19S2. 


For Share Index aid Business News Summary, Telephone 246 8C2S 
(number, preceded by the appropriate area code vafid for Louden, 
Birmingham, Liverpool and Manchester) 


iMds: *tattta tew t Hows, The 
Kttaraw. Tab 0532 <54969. 

UUmi: Proa de Abort* 58-111, LWNn2L7efae 
12533. Ttfc362 508. 

Mtarkfe ERnactatSt, Mtarid2LTii:441 £772. 


Hie, Oaten St, M2 5HT. Ttfcn 666813. Tab 
061-834 9381. 

JHedro Cfly: taw deb ReARB8l22-10,l«ofta 
6DF. Tab 535 6664. 

Mo sco w: HntaiMUgF 14, Aurtmmt J, Moscow. 
Trine 413300 Fhut Trt- 243 1635. 

New York: EdHarial and Arinri to wg 75 
RodtaW ter Pfaxo, N.Y. 10019. ErtterH Trine 
66390. Tel: (&Z) 541 4625. JUtutlitng Tries 
238409. Teb (212) 4898300. 


Parte EHteMata AfcorCbfcwJ Centro trJtfWm 
U Ixavre, 168 Rue da «*ta/fe044. Parts Ctatx 
ML Tetac 220044. Teb 297 2000. 

Bio de Ja neiro: Mo Bronco 45, Sato 26U-2612. 
Centro DEV 20090, Mo de Janeiro RJ BrazS. TcL 
263 8845. Tetac Cfo Staten. 

Home: Ed teriri md ArttatMoer Vta date 
Mero ta n 55. Trio: 630032. Tri: && 3314. 
St oc kh ol m. Etatertrf amt <6— Ag Svtmko 
Botattart, BimtaiTY-Mi 7. Tetac 17603. Teb 
SO 60 88. 

Tokyo: EAteW 8th Floor, Mho* KefeL’, 
SUtanu BnftOpg. 1,9-5 (Karachi, 
GMyodMaAi: 245 03SB. Tta 202®. 
t rt teTfte g K l t rii w M Ah i g. 1-6-10 UcMkatrtl. 
CMyoAMra. Triec 127104.. Tri: 295 405a 
y uMn a tao- ErttarW 9X4 RMteaai tas 


F.T. CROSSWORD PUZZLE No. 4,776 


ACROSS 

1 Crossroads "at the University 
(6) 

4 The design of a lawgiver 
(6) 

8 In all seriousness it is 
included in the profit IT) 

9 The debit upset me — it is 
the moment to retire 1 7 j 

11 Great little car for one at 
the Zoo (5. 5i 

12 Loan requested bv Antony 
(4) 

13 A broken pedal to offer in 
excuse (5) 

14 Composition — of Liszt or 
Gershwin 18) 

Solution to Puzzle No. 4.773 


□□IBDDQCIQ BEDDSEI 

□ no □ n an 
BUBBHEQS OQBEEJd 
a . n a e bee 

□G0GLIDP3 

□ a o □ 0 n s a 

(HQHQGECH3BBI 
BBS □ 0 BO Q 
BOB ENDED! 

E GQ_E El n B Q 
□□aano e lie sauna 

□ Hi m Q O E3 E 
QSHEEH3 BUtUllSDBB 

□ S Q D BOD 
OEHEiBn BGnnaDBE 


16 Emphasised the backward 
waste regions about the 
South ( 3> 

18 Message 600 feet long loj 

20 Defeat in Parliament (4) 

21 Coloured hybrid gives pedes- 
trians a code (5. 5} 

23 Inferior legislation to aid 
those in need (4. 3> 

24 Motoring body found within 
1.760 yards — what a wonder! 
(7) 

25 A sound office r—that’s the 
important part (6) 

26 The design of a camper (6) 

DOWN 

1 A soldier with the heart of a 
Roman dog (5) 

2 “Till that a. capable and wide 

swallow ihcm up” 

(Othello) (7) 

3 An unusual deposit down 
under (9) 

5 Work must be on time in 
Cavern Garden (5) 

6 Songs of praise for workers 
round the border i") 

7 A river to span— don't look 
for 1 across here i9) 

10 “She dw’Plt among the 

ways” ( Wordsworth) t.9) 

13 Variegated like Joseph's coat 

1 9) 



13 Holy Day island (9) -21 She saved the shim'™*.,. 

17 The fiMi ruler <8i crew-amazin-: , 5) “ 

19 Arris? in lighrer fire-screen 22 Di-ulqn secrets in Y U — 









Financial Times Wednesday January 20-1982 





HNSNCIALTIMBS 

BRACKEN HOUSE, CANNONSTREET t 1jOND^ 


Wednesday January. 20 1982 


A present from 


the miners 


THE NEWS Hfrat toe miners are 
no laager threatening to go on 
strike must come as a great 
pleasure to the British Govern- 
ment and a considerable relief 
to the country. 

True, the news has still not 
been officially confirmed, but Mr 
Arthur S carglll, the miners' 
leader-elect, has been h intin g at 
it for several days and went 
close to confirming it yesterday. 
Union members were asked to 
vote against the (present pay 
offer of 9.3 per cent and in 
favour of strike action if a sub- 
stantially higher offer was not 
forthcoming. The constitution 
requires a 55 per cent majority. 
The chief interest now, on the 
basis of wihat is known of the 
results, is how far the majority 
has fallen short 


Proposition 

Mr Scargill has blamed the 
outcome on an article written 
foy Mr Joe Gormley, the out- 
going president, in the Daily 
Express last week which ad- 
vised the miners to think very 
carefully before casting their 
votes and said that he person- 
ally was in favour of accepting 
the present offer because he did 
not believe tbat the National 
Coal Board had any more cash. 
Yet it seems unlikely that one 
article could have done much 
to sway the vote. Other factors 
must have been at work. 

One was the way the ballot 
proposition was phrased. If it 
had simply’ rejected the offer 
and threatened undefined indus- 
trial action, it might well have 
been carried. It was the threat 
of a strike which made people 
more cautious. The wording 
came from the moderates who 
at present control the executive 
by 13 to 12. They calculated 
rightly that the loft could be 
hoist with its own petard by 
.asking for a strike mandate. 

It is also the case that the 
miners recently have been doing 
pretty - well Mr Gormley ‘ wrote 
in his article that no onion in 
Britain has. done better since 
Mrs Thatcher entered No 10 
Downing Street and the miners 


know it Even the 9.3 per cent 
offer is high in comparison with 
what the Government would like 
to see in the rest of the public 
sector and certainly with many 
settlements in the private sec- 
tor. 

Yet it is still worth contrast- 
ing the 70 per cent by which 
Mr Scargill was recently elected 
President with the rejection of 
the threat of strike action. At 
first sight, it seems that there 
is a contradiction here— the 
miners turning against their 
militant leader. It is more 
likely, however, that the miners 
know exactly what they are 
doing. It ds, after all, a very 
democratic union where deci- 
sions are taken only after a 
great deal of of discussion. The 
real lesson, therefore, is that 
the majority of the miners do 
want militant leadership, but 
that they do not yet want mili- 
tant action. 

It may (be different next time. 
Mr Scargill is unlikely again to 
be landed with an unnecessarily 
extreme motion for the ballot, 
and in any case the balance of 
power in the executive is expec- 
ted to change slightly in his 
favour. 


Realism 


Yet for She Government time 
is a most valuable commodity. 
The contrast that matters here 
is how different the prospects 
for the next few months would 
have looked if there had been a 
miners’ strike on the horizon. 
Memories of 1973-74 when the 
miners effectively brought down 
the Conservative Government of 
Mr Edward Heath were already 
being invoked. 

Now the prospects are not 
exactly dear, but they are a 
good deal better than they were. 
The aim of keeping down public 
wage settlements in general 
should become more realisable. 
There is time for the economy 
to recover somewhat before the 
next miners’ claim comes round. 
And the Government is entitled 
to point to the result of the pit- 
head ballots as another example 
of growing economic realism in 
the country. 


Sudan’s president 
takes a stand 


PRESIDENT Jafiaar Numairi of 
Sudan has led something of a 
Disarmed existence. He ms sur- 
vived (three serious coup 
attempts and numerous plots 
since taking power in 1969. 

Now a combination of factors, 
not least the desperate economic 
and financial condition of Sudan, 
has Inevitably raised a .grave 
question mark over a regime 
winch for the past decade has 
provided essentially moderate, 
pro-Western, government .. in 
what is Africa's largest state. 

Libya’s threat to Sudan, 
grossly exaggerated by Mr 
Numairi in the hope of eliciting 
more military aid from the U.S., 
and amounting to little more 
than border harassment has 
now receded. A far more dis- 
turbing development has been 
the reseurgence of political dis- 
content in the oil rich southern 
region of the country and 
secessionist feelings there. 

Anger and suspicion have 
been engendered by Mr 
Numairi ’s dissolution of -the 
Southern Region Assembly and 
his plan to split the region into 
three provinces. This is part of 
a move to decentralise govern- 
ment, but one suspected motive 
has been a desire to curb the 
influence of the predominant 
Dinka tribe. 

Sudan’s chronic ills are. how- 
ever, the main source of discon- 
tent endangering stability. A big. 
rise in sugar prices, which pro- 
voked student riots, was one 
part of the programme of aus- 
terity introduced by the last 
government on the recommenda- 
tion of the International Monet- 
ary Fund. Implementation of 
tough reforms are the condition 
for a loan of 198m SDRs 
($227m), yet to be approved,' 
whkh would probably be In the 


form of a standby facility. The 
recently agreed rescheduling of 
some 9600m of commercial 
banks debts under the recently 
signed agreement was also con- 
tingent on reforms. 

The rescheduling . of all 
Sudan's foreign debt, currently 
amounting to some $3bn, and 
the prospective IMF loan 
should cover Sudan's financial 
and payments needs in 1932. 
But the IMF’s prescription will 
be a painful one for a country 
classed as the 17th poorest in 
the world. The gloomy pros- 
pect is that the Sudanese con- 
sumer will have to be squeezed 
still more as part of a longer- 
term recovery programme. 

Sudan bears more responsi- 
bility than most developing 
countries for its own plight 
Beginning with heavy-handed 
nationalisations a decade- ago. 
the Sudanese Government has 
compounded basic economic 
problems through mismanage- 
ment, slow or ineffective 
decision-making and lack, of 
planning. 

Deplorably little of Sudan’s 
agricultural potential has-been 
fulfilled. Production of cotton, 
traditionally the main export, 
has fallen by 60 per cent over 
five years and last year earned 
less foreign exchange than 
ground nuts. Despite the 
massive investment in the 
Kenana sugar project, self- 
sufficiency in sugar may not 
be achieved -this decade. 

President Numairi has now 
asked his country to accept a 
dose of increasing austerity, or 
to accept his resignation. It is 
a belated gesture, but a brave 
one, and it must be rewarded 
with continued Western sup- 
port. . 


De Lorean gamble 


5£ DE LOREAN car project 
Belfast started under the 
ihour Government in 1978, is 
high-risk venture backed by 
disproportionate amount of 
spayers’ money. To some 
ople’s surprise, the company 
now making and selling cars 
d employing 2,600 people, 
it its finances are fragile, 
le long-term viability of the 
oject remains in doubt. 
Given the need for jobs In 
Hthera Ireland, the Govera- 
;nt had no alternative but to 
tend the loan guarantees to 
s company. In announcing 
is derision yesterday, the 
ivernment said it would 
eview its overall relationship 
tfr'the company." After, the 


events of the past few months 
tighter monitoring arrange- 
ments are certainly needed. 

At this stage there can be no 
question of pulling out But the 
Government has to deride, 
after investigation, whether the 
finances of the business can be 
put on a sound footing, whether 
there is a market for its present 
and projected models and 
whether De Lorean can become 
a self-supporting business within 
a reasonable time span. Unless 
these conditions are met 
further- financial backing would 
be a disservice not only to the 
taxpayer bat also to the com- 
pany's employees; there is no 
security in jobs which depend 
on permanent government 
support 


CUTTING UNEMPLOYMENT 




■C’;- 


and the 


By John Lloyd, Labour Correspondent 




T WO MOVEMENTS, at 

opposing ends of the age 
spectrum, are gathering 
pace in Europe. The first, ’ 
thrown into sharp relief in 
Britain last summer, is a rebel- 
lion of the young which is 
assumed to have been in part 
a protest against the inexorable 
rise in youth unemployment 
The second has gone all but 
unnoticed, though it has 
spawned a catrib phrase. “Grey 
power',*’ the protest movement 
of the elderly, has been 
directed not only at attempts 
to secure higher pensions but 
also at resistence to attempts 
to force older workers to retire 
early. There are also those who 
argue for an extension of the 
retirement age. 

The elderly are not united on 
this: many workers, it appears, 
would prefer to retire early. 
Yet the movement, for the mo- 
ment, seems to be responding 
to upward pressure: in Italy, 
for example, the pension age is 
being raised to 65 from the 
present relatively law figures 
of 60 for men and 55 for 
women: while in the UK the 
Government and the Equal 
Opportunities Commission have 
sugested raising women's pen- 
sion age to 63 or 64. while 
men's pension age drop by only 
one or two years, to equalise 
retirement ages. 

These two movements, of 
youth and age, are wholly 
incompatible at a time of falling 
employment They highlight the 
problems facing Governments 
across Europe who are seeking, 


Belgium 


As unemployment 
continues to rise, 
many governments are 
tempted to see early 
retirement as a way 
of creating new jobs. 

But there is a catch, .. 

Retiring workers early 
is expensive. It places 
an extra strain on 
pension schemes. And 
it also imposes, a 

human cost for those 

workers who do ilOt Netherlands 
want — or cannot 
afford — to retire early. 


PENSIONS !N EUROPE 


RETIREMENT PROVISIONS. IN SOME. EEC COUNTRIES 


Retir e m en t 
test or 

Normal earnings rule 

pension age at normal 
( M) (E) pension age 

6S M Ye* 


' Actuarralfy 
reduced pension 


5% pa for up to 
S year* 


Early pension for 
lon g-term unemployed-. 

Froir\ 60, unemployment benefit 

plus difference between UB and 
previous wage. 


France 


65 


65 


None 


S% pA earnings 
fpr 5 years -subject 
to maximum . of 
50% pension loss 


From 60 (or earlier) special 
benefit. Tor redundant workers. 
Abo arai^e to.'YoIuntctn.. 


W. Germany 65 65 


None 


None 


Fair pension at 60 with IS yeare 
continuous service aid unem- 
ployed far 1 .year in 18 months. 


Italy 


60 55 


Yes 


None 


5 years . early for', wonkert dis- 
missed frorp certain industries. 


65 


45 


None 


None 


UK 


65 


60 


Yes 

until 7D(m) 
65(f) 


None 


None. , 

From 60, higher rate of supple 
mentary benefit. 


Source; House of Commons Social Services Committee 


Two movements 
which are 
incompatible 


often desperately, for ways 
either to increase the supply of 
work or decrease the supply of 
labour. 

Early retirement— reducing 
the pension age — Is among the 
most popular of the solutiens 
canvassed, since at first sight it 
seems both to open the way for 
younger workers and to bring 
benefits for the elderly. Yet 
on closer examination, the alter- 
native has all kinds of costs 
beyond the awkward fact that 
many older workers want, or 
neetC to carry an working. 

—AMONG THE PROBLEMS — 

• early retirement will be 

expensive — Governments will 

have to pay increasingly large 
sums to open up a smaller and 
smaller number of jobs; 

• it will place a large burden 
on occupational pension schemes 
which are already suffering 
from enough problems: 

•fit also imposes a human cost: 


workers feel unwanted, their 
skills are lost And. inevitably, 
more of them get poorer earlier. 

Youth unemployment is 
likely to get much worse in all 
European countries before ft 
gets any better. Not only are 
the number of vacancies for 
school leavers and young 
apprentices continuing to fall — 
especially rapidly in the UK — 
hut the birth “bulges" of the 
1960s are now coming on to the 
job markets of Europe. 

They will continue to do so 
until the second half of this 
decade, when the 16-24 age 
group begins to fall from a mid- 
1980s peak. But the total labour 
force will continue to grow, 
though more slowly than before, 
until well into, next century. 

Britain has had five years of 
experience of a jolwueating 
early retirement scheme, in the 
Job Release Scheme. Introduced 
in January 1977 by the last 
Labour Government, it was 
designed, as the Department of 
Employment recently made 
clear in evidence to the Com- 
mons select committee on social 
services, *’ primarily and essen- 
tially as an employment 
measure rather than a move 
towards early retirement” 

In essence, the scheme 
depends on the replacement of 
the older worker who is retir- 
ing by a younger worker: those 
retiring now receive between 
£49 and £50 a week; the scheme 
began for 64-year-old men and 
59-year-old women, but has 
been extended to 63-year-old 
men and, from next month, to 
62-year-old men; there are now 
some 50,000 people in the 
scheme, a figure- winch is 
expected to grow to 120,000 by 
next March. 

.Its effectiveness is difficult to 
measure. Since it was intro- 
duced the unemployment figures 
have risen sharply and thus any 


calculation is only of the pos- 
sible mitigating effects of the 
scheme. The Department of 
Employment reckons that 
between 75 and 80 per cent of 
those returning e&ity are re- 
placed from the unemployment 
register — the remainder coming 
from some other for m of occupa- 
tion or previously unregistered. 
There has .been some resistance 
to the release scheme from em- 
ployers: DoE surveys show that 
16 per cent of workers who 
wanted to participate in the 
scheme were put off by their- 
employers. 

The Job Release Scheme’s net 
cost is similarly vague. Accord- 
ing to DoE officials giving 
evidence to the select commit- 
tee, the gross cost for the pre- 
sent financial year is £167m, 
rising to more than £400m by 
1984 in cash terms: the net cost, 
they said (taking into account 
the reductions in social security 
payments) would be expected 


to be around half the gross. So 
it appears that there is likely to 
be a reduction of less than 
100,000 in the unemployment 
totals at a net cost of around 
£200m a year. 

Based on toe experience of 
the release scheme, and on 
other projections* the DoE has 
constructed a series of estimates 
of the net cost to central gov- 
ernment of an overall reduction . 
in the retirement age. The De- 
partment estimates that a 
lowering of the age to 64 would 
cost £400m set, to 63, £800zn; to 
62. £lJ2bn, to 61. £l.9bn. and 
to 60, £2.5bn-' 

The central assumption here 
is that two-thirds of the jobs 
vacated by early retirement 
would be filled by workers now 
on the unemployed register. 
However, even if there were full 
job replacement from the 
register, the costs would not 
fail very much — to £3 00m with 
a retirement age of 64 ranging 


BRITAIN’S POPULATION: PROJECTIONS 1979-2013 

(In thousands — % in brackets) 

Age group 1979 1989 1999 2009 ‘ 2019 

(a) Children (MS) 

12^45 

11,716 

13^58 

12J12 

12^10 

(23.1) 

(2U) 

(2W) 

(21 A) 

(2U) 

(b) Working ages 

32,407 

3JJ5? 

33jm 

35JKT 

35,767 

(16-64 for men, 
16-59 for women) 

(596) 

(61-D 

(59.9) 

(*1-5) 

{MA) 

(c) Over pension age 

9,456 

9,799 

9,432 

9*671 

IftSll’' 

(65 for men, 

60 for women) 

07.4) 

(17.7) 

0«J) 

(1731) 

(1B.1) 

All ages 

54,408 

55,266 

56^68 

57JBO 

58,186 

(100J0) 

(lOUO) 

(10031) 

(1003)) 

(1003)) 

The ratio of working age 
over pension age 

3.4J 

.3^4 

XS9 

3j62 

335 



■ Source: OPCS. Series PP2 No 11 


- - 



■4 

— 


up to £1.1«m at 60- The cost of 
earty retirement, on any 
reefamte is hjgh. - 

The squeeze, however, would 
not ordy be- oh Jibe, state. Occu- 
pational schemes fa Britain are 
already suffering .. from the 
effects of . the recession: pay- 
ments from schehies have 
accelerated over the « past five 
years, in ;part because com- 
panies have been, enroutagfag 
mine workers to retire earty. 
But this is not the ooSty pres- 
sure an oaaipattanal schemes: 
as Mr John * Mason -of /stock- 
brokers Capei Core - Myers 
points out in a recent study, 
pension contributions rose: ; by 
only 10.1 ptor cent. in 1980, mar- 
king “ an Important reversal of. 
a trend " wfaidh has seen pen- 
sion funds grow mudh 'more 
strongly for a decade^ 

In previous recessions, Mr 
Moxon says, • pensions- funds 
were compensated ..fob the drop - 
fa membership because a . grow- 
ing number of funds contracted 
out of the state scheme, ,and 
by improvements in . pension 
arrangements,;.. 

.“By contrast, we: have now 
readied a mature, staged with 
virtually mo additional schemes 
contracting out, and there has 
been a temporary halt, -because- 
of the economic -climate, , to 
further improvements in-pen : 
sion provisions. This has meant 
that the pension movement has. 
had to bear tbe faff burden of; 
the cuts in membership implied 
by the reduction/ in employ- 
ment without anyrompensatiug 
flows elsewhere.” - ; - ■ 

A further burden of statn- 
tory early retirement, then;, 
would clearly bring- the occupa- 
tional schemes to near .crisis 
point The Occupational Pen- 
sions Board, in a; note to the 
select committee, notes that, the 
lowe=fag of the male pension 
age to .60 would be “ expen- 


sive^- requirlng- an. extra con- 
tribution of , 2*- per ^ceat of 
salary from, new scheme mein- 

bers r and 2 ^ per cent of ’salary 

for ' existing members; because 
of the latter's need'fapajrrfor 
part"as/well as fature.se rvice. 

• Accurate -^measurement r of 
the human cost of a radical cut 
-In . retirement • ■ : age-rhscally 
defined as five years, for men 
at': least— depends upon anec- 
dote and ^rommon sense* the. 
TUCs evidence to ‘toe* select 
comhoftee- posed j th&rimtorical 
question/ “ whether .right 

compulsorily to . . . ‘ unemplpy • 
one section of t±« ^tnfaorunity 
morderfo provide jofe oppor- 
tunfaes for ano@iet”^lt'then 
moved' Sub* the ‘mjoral tb ; 
practical by suggesting .that fae 
removal of older:: sSJlfed 
workers would be . uirwiaa at^a 
tinfe ofcnntimsing 'skill gfcart- 
agerit referred to a DoE survey 
which showed that- the- .sharp 
decrease ; of activity rates A j>y 
older workers in recent years 
was largely due to high unem- 
ployment,' and eonriudeijl -that 
“ older v‘. workers - ' are ■ obefitg 
forced oiil o£ the labour: maricet 
by-redundancy” . - - . 

'It - can 'readily -foe fangiaed 
that- there is * -stiff..' hasher, 
human cost: .the; retirement -of 
men -and - women- faf late nudffie 
agei .' on ^pensions aftiow 

■ them osty to live fa J poverty. 
The- TUG pointer 'out'- thal 
“ etUkstiy.people we .the largest 
single-' group -in poverty- -fa 
Britaia; more than hatf : 
snppafaneafaay dteim- 


'?• 






-'C 


An • option wbich t : , 
could be 
expensive ^ - 




ants are pehskmers'. . . eidariy 
peopie/ suffer ■■the. .worst health 
problems and- ft fas fa the least 
. adequate, housing,” ' : . 

5hus, while fae TUC/aip- 
'.pozfa:dieVpha^'-'rednctibn' of 
male retirement^ 60, 'it does 
so dn]y . if pensions are ..ad : 
equate- tor-sepwre 
above the poverty line;' The 
Government, which, sets out. fa 
its seteot oomfaittete evidence. 
st pension scale redncing actu- 
ariaMy at 8 pei? cent a year 
(tons TfaJfagr a marnedxateat 
^60 4rf.38^^comnMinte:that “in 
the ionger term there, coirid-be 
sfamficanf extra cpsts if the 
reduced, -pensions were merely 
toTnerease toe. number of re- 
tirement phsKmdrs -ytftbM .toe 


scope of; The ! .- supplementary 
benefit scheme.” ••••-' 


It: is -dear, fa-sum; that -tbe 
eariy retirement option could 
be expensive and is certainly hot 
cost-£re ; . Indeed 'if a-ppears tfiar 
any widespread early, retire- 
•ment scheme v would . actually 
mean -only marginal gains. 1 ;;. . 




' *V ,■ 


Men & Matters 


By yon bonny 
Clydesdale Bank 


ABck Macmillan may be step- 
ping, down as chief executive of 
Glasgow's Clydesdale Bank, but 
he doesn’t seem in any mood to 
put his feet up. Although there 
are no immediate plans for him 
to succeed Sir Robert Fairbaim 
as chairman, Macmillan will stay 
on the Board when he retires 
to June.' 

-Richard Cole-Hamilton, now 
being promoted from general 
manager to deputy chief general 
manager, will by then have had 
five months to 'learn the ropes 
at the top. 

The chances are that there 
wiU foe plenty to keep Macmil- 
lan busy at the Clydesdale — 
though there is the possibility 
of one or two outside director- 
ships as well. He has in recent 
years “personally spearheaded 
the bank's assault on the oil 
community in Houston,” in the 
bank's own words, as well as 
beavering away to push up the 
market share at home in Scot- 


land. 

The Clydfisdafa has been 
owned by toe Midland Bank for 
60 years — a long time in which 
to k?ep customers convinced 
that it remains Scottish at heart 
That issue was thrown into par- 
ticular relief by the debate over 
the possible sale of (he Royal 
Bank of Scotland to non-Scoltisb 
owners, a prospect since blocked 
by the Government. 

Indeed, one witness giving 
evidence to the Monopolies Com- 
mission inquiry into the RBS 
bids went so far as to describe 
the Sassenach-held Clydesdale 
as “a neutered cat.” a descrip- 
tion which caused mirth in most 
Scottish banking balls save the 
Clydesdale's own, “We don't 
feel neutered.” senior execu- 
tives assured me yesterday, “we 
are Scots talking to Scots, and 
long may it remain so.” 


Trattoria Terrazza in Soho for 
Mario and Franco and has since 
designed another 34 restaurants 
in London and the provinces as 
well as founding the Arctusa 
(now Wedgies) fa Chelsea. 

Apicella, who opened the 
Meridiana in 1969, began life as 
a - journalist in ‘his native 
Naples. He came to London for 
a short visit in 1955, sold a 
poster design to Schweppes, 
and stayed on to make his mark, 
too. as a graphic artist and 
cartoonist. 

His impish sense of humour 
still lightly sauces the spaghetti. 
While Apicella talked to 
reporters at one end of toe 
table yesterday, a lifelike wax 
model hurled its twin drooping- 
moustacbed face in a newspaper 
at the other end. 


work is my excitement." Any- 
thing else? Oh. yes— -“I shall not 
retire until the year 2001." 

Holmes 5 Court, 30 years 
younger than Grade, confessed 
yesterday that he hoped to 
retire rather earlier than that 


Rustle of springs 


Watered stock 


Pasta master 



“Could you get me our 
merchant bankers . . , and 
a Coke!" 


Enzo Apicella. the man who 
gave England's Italian restau- 
rants tbe cool atmospheric 
flavour of Mediterranean villas, 
is now offering his pasta-loving 
patrons a new deal. 

Last year Apicella bought out 
his former partner's interest m 
the Meridiana restaurant in 
London's Fulham Road. Largely 
to repay his bank Joans on that 
deal he is inviting up to 1,100 
customers to join him fa the 
business. 

Meridiana Holdings, which 
owns the restaurant, is offering 
Individual shares of £500 in the 
venture. Apart from the usual 
voting and dividend rights, the 
shares will also entitle toe 
bolder to six meals a year at a 
50 per cent discount — worth 
some £60. 

Though toe restaurant's 
■profits have declined during 
the past few years, Apicella still 
caters for some 50,000 
customers a year. He has plans 
to develop the restaurant’s 
basement as a club for share- 
holders and. guesfoi. 

He first entered the restau- 
rant business by designing La 


Showing some traditional 
Northern grit, staff at MFI’s 
York store managed to open for 
business as usual earlier this 
month even when flood waters 
had all but brought the city to 
a halt 

And how did the good 
burghers of York respond to 
this noble gesture? Reservedly. 
I am afraid. The day's takings 
from tbe 24.000-square-foot 
store amounted . to £8.95, 
courtesy of the purchaser of a 
nest of tables. 


Not for the first time Ford 
Motor is recalling thousands of 
its cars in the United ' States. 
“ But it's not your typical 
recall." a company man. loftily 
assures me. “ ft has nothing to 
do with their safety or hand- 
ling.'' 

Ford wants to fix the front 
suspension of about 10.000 of 
this year’s Lincoln Continentals 
— at $12,000 apiece. Ford's 
answer to the Cadillac— because 
a couple of rubber insulators 
" make an annoying noise." 

What kind of noise? “It’s 
kinda hard to explain bat I 
suppose you would call it a 
grunt.” 


Brief encounter 


Grade tradition 


As Robert Holmes 5 Court, 
Lord Grade's new boss, was 
admitting that he himself had 
not seen ACC’s disaster movie 
“Raise the Titanic” — though 
his children had— Lord Lew 
was at toe Law Courts in the 
Strand fighting off an injunc- 
tion from his former right- 
hand-man Jack Gill. 

Grade set a new legal pre*. 
cedent by dancing a quick 
Charleston outside court 
number 17, before proclaiming 
that “work is the best medicine 
... it is a wonderful pill . . . 


What toe legal profession may 
get up to on its package holidays 
to Bangkok is really none of my 
business-Hbut it does seem to 
have caused some irritation at 
the Siam Lodges Hotels group. 

Guests at the Thai hotels are 
issued with a pamphlet of local 
fore, entitled "Suggestions for 
your Safety/' Host of the sug- 
gestions are pretty routine stuff 
—keep the door locked, hand in 
your keys when leaving, don’t 
carry too much cash and so 
forth. • 

Rifle IX might, however, raise 
an eyebrow in El Vino’s. 
“ Please do not" it warns, “ asso- 
ciate with solicitors around toe 
hotel” : 

Or anywhere else, they might 
have added, unless yon enjoy 
the sensation of being separated 
from large quantities of money 
in the politest possible way. 


Observer 



• Tftm may know we are tifaV* 
■world's largest, most- -■ 

experienced, indepcaident ■*, 
exhibition OiganKcfa.'Ybn: 
maybeunaware of the - 

enomrotislyv^eiangeof 
marke ts our events cover: v ' 
Or how costeffiective (hefa . 


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winning ihe business. 

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getting to knowyour • \ of . ^ >~ 7 

' customers, and their needs. : . ■ o ntxSeas^ ^ 

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betweeabefagiathe . - ‘ feaaafe \ ' ' 
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the market-place. It 3 ^ ' . SoBhnlLS^Mkffai»d^- v :■ '*4 
summed up by acompany- 

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23 


^ vart Hattem, Political Staff 


'^k ^rv^^:v ,v 

:.£■;£ .^T^^'Ky ; / : y: - *#■& 




IF MOST poJitidans ^re by credible . devolution of power 
iwtifre.-eitliMr L cttess -(rp pok* . for a long time beyond the term 

- Players? .. -BEr ■: - Jetjura, - r Pri or. ■ of the present Government.' 
Northern Ireland Secretary, is-. -. A The Government’s detennina- 
probably"; a^chess \jpaan. He tion to go ahead now seems to- 

the otrefal' b& based Jess on a feeling that 
. strategy,^;, ^antjjtlp^ug ■ - '., Ms . .the time is ripe and tbeprovince 
opp^ents’'^ ready than on a conviction that 

. Ms.. gfcipeL 1 idcprdMg^i. . than ,.to - thJn^ esJhnpt go on as-’thev are 
;■ bluff and^showddvm.v- But . he is any .longer. The Northern 
Ynowhepig fo rc ed tojoin a poker Ireland .economy is deteriorat- 
. - gante; . that . • has : - been -running toff" so rapidly that; ministers 
* for Many years; ; .r -f«e* . ' ; Qje. . .present political 

» Mr 3PB«r fe ahouiL to-.put' his arrange ments can, no longer 
i. cards , -on- i.tfcO* table/ YSodn. serve-' even : -to maintain the 
s possibly; -early month, he &atus -quo? - 

expecte<i-to unveilhls "solu- <•■.- Just how big a change it will 

: tiim to the problem' Which -lias be^5 ,n^: yet clear. Mr Prior- 
V defeated -«p many ofc-his ; pre- - "wants -aj-system .-sufficiently flex- 
-dmssprs —-getting l^rthern-. i w e to bend before the almost 
■‘Ireland’s Cathohc manority and 'inevitable';.-.: battering ." ■ * from 
-.Protestant majority. to work to-. Catooflcs^andProtestants alike 
' gether in a devolved. . goyern- “^the boycotts,' strikes and walk- 

- jQfflit. ■/ - , outs tlmt/ lmyfi sabotaged all 

In essence! -his -plan is -to set Ptovious attempts — and to re- 

_ ' I . • . nlsin ’imnshf. <k> rnkn 


tiye,. and gr^dppTTy.' to transfer that; he is expected .. 
ppwer -to them*- from West- "- ■ have, - been, designed 

? minster. > ■ ■■: . V- - • •• " " W1 ^ 3 ta tnirid. '■.• 

the conditions "fot- success . : The assembly will be the 
* r Itfok Jess ■ promising than ever, easier of the two to establish, 
After so many 'fafled attempts, "since none of the main political 
the province’s, bigger political .Parties believes it can afford to 
-parties' have 'grown -weaJc and stay--out- o/ anjr elections in -the 
'discredited,- leaving the elector*; province. Sp elections are likely, 

- "■ ate 7 . volatile and unpredictable, probably 411 late -summer or 
" . l -Mr ;j Jpriiir’s proposals ,. will _ fr r ® n assembly of 

almost' certairily' be criticised,' ' 1*9/' seatJ *- ' Initially, it 

- po^]y/-rtiected' ppiright- by .USSL ^^.' . le § lslatl<5n an ? 
a3I -‘ the province’s leading poh- non-legsla tl ve.- measures, - and 

- ; ticiaiis- such is the suspicion; in up.-roinnnttees- which could 

. Northern Ireland tiiat appraval sun ? mo ^. servants- and 

\fm tme woald^ t&c* W the I*™****? 0 on 

holdout for more’ CO^.- ar f as ; 

■‘sessions. * y--"" -Th6 enabling legislation 

•??Ke Secretary of. State - wUI would incMde provision for real 
■live: to. judge how far he oin werjto-he devolved later -on. 
-’pusit the indivjdnial paliticiaas powr will be one 

<irn*I Mw far : they mean * what ‘.Pi fK ; mosn difficult decisions 
"they iwy. . More * important; he . -J®° Jf ^ r ^ rior 111 the next few 
-' needs io know how. far be can' . .. \* 

* push their supporters!;- The com- • •- ..The - enabling' “ legislation 
■position.^; of-;., .the- 'proposed .would probably bare to spell out 
assembly -.will ’-be heavily deter- whether the .^assembly would act - 
_ inihed by-'tiijs second judgment, by; simple, or weighted majority, 
.proposals go too far to- and if weighted, by what per- 
vards .accommodating the Cath- centage, While the Government 
ollcs, he is likely' to end up with ’ sympathises with .the Catholic 
an alseinbly firmly ’m'tfie hands minority, w^io claim that a 
M;the Rev Ian -Paisley. ! - wel^rtihg .q£, Jess than 80 per 

"' Tf they do iiot go' far mough, - c ? Dt ma y confine .them to per- 
. ! lw jisks imidermmi^ . Suppoi^' P^ti^ bnpo^ it is deter- 
fbrithe Social ^Democratic and mined., -that .no single- party 
iaboiif -Party, «tHl the main should haw the right of veto. 

. jvmce of Calnoiic opinioD, and So any ^proposed weighting is 
’ "handing over -seats - to-. Provi-. .likely to.. fall ..well -short of 
'•Tsional Smu FeiH. ■- Either of CathpHe demands, 
ithese xesulto could block any / Once the assembly was in 

- further progress towards a place, so the-, current thinking 

si -*»**:. h • ' ‘V- .. . • ; 


goes, Mr Prior could proceed to 
appoint an executive to take 
over the role of ihe present, 
team of junior ministers. Mr 
Prior, as chief executive, would 
retain ultimate control as well 
as specific responsibility for. key 
areas such as finance, security 
and foreign affairs. The other 
members .would probably be 
appointed from the main parties 
represented . in the assembly 
and, at least -to begin with, a 
number of /Westminster MPs 
such as some of the present 
junior zninistej-s. " Since the 
Government’s aim is to provide 
real jobs rather than symbolic 
ones, -the size of the executive 
might be closer to the present 
ream of six ministers thaw the 
old 14-member executive set up 
m the Sunni ngd ale agreement. 

By. leaving the door open to 
Westminster MPs or even uon- 
elected members of one or 
other community in Northern 
-Ireland, this plan would under- 
mine the scope for Ulster poli- 
ticians — such as the Unionists 
Who still reject totally toe idea 
of power-sharing at ministerial 
levrii — to wreck the executive 
by refusing to participate. 

One of the most difficult 
problems yet to be resolved 
concerns the possible transfer 
of the. post of chief executive 
from the Secretary of State to a 
Northern Ireland . politician, 
perhaps toe leader of the 
majority party in the assembly. 
This immediately raises the 
question of guarantee that 
minority parties would continue 
to be represented in the execu- 
tive. For the majority cannot 
be forced to share power with 
the mfnority. however much the 
Government may wish it were 
otherwise. 

In dealing with the Unionist 
side, the Government must 
take intn account both the 
Official Unionist Party iOUP». 
the oldest and still marginally 
the biggest Of the five Unionist 
parties, and Mr Paisley’s Demo- 
cratic Unionist Party (DUP). 
which at the 1981 local govern- 
ment elections won more votes, 
though fewer "seats, than the 
OLTP. 

• The two parties differ mare 
in style and tactics Than in sub- 
stance. the DUP being the more 
militant Both currently reject 
any sort of power-sharing at 
executive level and are press- 
ing for majority rale with a • 



role for the minority in parliar 
mentary committees. 

So far, the Government has 
ignored the DUP and consulted 
the OUP in discussion on devo- 
lution. But the OUP. in the 
throes of a leadership struggle 
and an organisational collapse, 
is proving too weak to nego- 
tiate. Sooner or later. Mr 
Paisley will have to be brought 
into the process. 

On the" Catholic side, the 
Government is also dealing with 
a weakened party. The SDLP. 
led by Mr John Hume, which 
has always been regarded ac a 
rather middle-class party with a 
tenuous hold on the working- 
class ghettoes at the best of 
times, saw much of its support 
slip away at the time of the 
H-block hunger strikes. While 
its stated preference is for 
either power-sharing or maj- 
ority rule for the Unionists 
within a federal Ireland, it is 
likely to he encouraged by the 
present Dublin Government to 
go along with Mr Prior’s plans. 


After 13 years of violence, 
political stalemate and failed 
initiatives in Northern Ireland, 
Mr Prior's efforts are likely to 
meet with a fair amount of 
scepticism. But this time 
around, there appear to be three 
new elements. First the Anglo- 
Irish council, which provides a 
version of the “Irish dimension’ 1 
essential to the- Catholic 
minority. Secondly, the concept 
of an “ nnboycottable” institu- 
tional framework to minimise 
the threat of the type of 
Unionist wrecking tactics which 
destroyed ' the . 1973 Sunning- 
dale power-sharing agreement. 
Finally; the frustration of the 
Unionist community after a 
prolonged period of solitical 
impotence. Whether these new 
factors will be sufficient to hold 
in place whatever Mr Prior 
proposes is highly uncertain. 
But somewhere out there on (he 
rapidly-accelerating Belfast- 
London shuttle is a novice 
poker player who is learning the 
game fast. 


Corporation Tax 


Why there ought to be 


a cash-flow tax 

• By Jeremy Edwards and Colin Mayer 


CORPORATION TAX has ante 
again become a controversial 
issue following the publication 
of a Green "Paper this month. 
The Green Paper reveals a pre- 
ference for maintaining exist- 
ing chaotic arrangements and a 
hostility towards proposed alter- 
natives. Some of its criticisms 
of these alternatives are well 
founded; for example, correctly 
details the deficiencies of a 
current cost accounting base for. 
tax. But its evaluation of the 
Meade Committee's proposals 
for a cash Sow tax reveals seri- 
ous, misunderstandings of the 
committee's recommendations. 

A cash' flow tax thereafter 
CFT) has one overriding ad- 
vantage — its simplicity. It taxes 
companies on the difference 
between their receipts and their 
payments whether on current or 
capital items such as invest- 
ment in plant and machinery 
and thereby avoids all questions 
regarding the appropriate 
definition of profits. These net 
earoings are used to make dis- 
tributions to the 1 investors in 
the firm and the CFT can there- 
fore equally well be regarded 
as a tax on toe net .amounts 
that investors take out of their 
company. There are two alter- 
native definitions of distribu- 
tions: the first, described by 
the Meade Committee as the 
*‘R" base, includes payments to 
all investors, whether holders 
of debt or shares’’. The second, 
the “ S " base, excludes debt 
and restricts the tax to net 
receipts by shareholders {divi- 
dends less new equity issues). 
There is no obvious case for 
excluding payments to holders 
of debt so that we . would 
strongly favour the an inclusive 
"R" base. 

The most compelling reason 
for adopting a CFT is that it 
avoids the complexities and 
distortions of the' present 
System. Our existing corporate 
tax legislation is a monster that 
has grown out of ad hoc- 
attempts by governments to en- 
courage certain activities, 
while at the same time correct- 
ing serious problems arising 
from inflation. The net result 
is tax legislation strewn with 
anomalies which encourage 
companies to Invest in build- 
ings in preference to vehicles 
but not in preference to plant 
and machinery’. It provides no 


incentive at all to one-third 
of the corporate sector which 
will not be liable to tax for the 
foreseeable future as a result 
of tax losses carried forward. 
A cash flow system avoids 
these distortions by making all 
forms of physical investment 
tax deductible and thus leaves 
the investment decisions of 
firms to commercial instead of 
tax considerations. 

Secondly, the CFT solves the 
seemingly insuperable problem 
of inflation at a stroke. Com- 
panies would be taxed on the 
basis of net current earnings' 
only, and no correction "would 
thus he required for profits on 
capital. In particular, by valu- 
ing receipts and expenditures at 
toe date of transactions, a CFT 
does not involve the revaluation 
of historic cost investments and 
accumulated stocks. Further- 
more. by taxing cash flows as 
opposed to future capital earn- 
ings. it avoids the liquidity 
difficulties that have afflicted 


Our existing corpor- 
ate tax legislation is a 
monster that has 
grown out of ad hoc 
attempts by govern- 
ments to encourage 
certain activities 9 


profits taxes and ensures that 
the tax burden falls on com- 
panies that can afford to pay in 
the current period. 

The Green Paper raises two. 
fundamental objections to the 
CFT. First, , it estimates that 
in order for the tax to raise 
the same revenue as at present, 
the tax rate on net payments to 
shareholders (an “S" basis) 
would have to be set at 200 per 
cent. The problem with the 
Green Paper's calculation is 
that it assumes that the present 
system raises revenue at the 
rale of 52 per cent of profits. 
With tax allowances on capital 
expenditures, stock relief, etc. 
this is far from the case. For 
the years 1976 to 1980 the effec- 
tive rate of corporation tax 
(excluding both advanced 


corporation tax which is clearly 
a personal income tax on share- 
holders and company invest- 
ment income tax Y was approxi- 
mately li per cent To raise 
the same revenue an “S" base 
cash flow tax rate would have 
had to have averaged 69 per 
cent, approximately one-third of 
the figure quoted in the Green 
Paper. 

The. Green Paper’s main 
objection concerns the integra- 
tion of a CFT into the existing 
income tax on persons. It 
refers to toe problems of allow- 
ing companies to. accumulate 
investments tax-free while un- 
incorporated traders or indi- 
vidual investors who wished to 
make similar savings would 
have had to do so out of income 
taxed at a marginal rote which , 
might reach 75 per cent How- i 
ever, under the present system . 
of tax capital allowances apply 
equally to both companies and 
unincorporated businesses and 
there is no suggestion in the 
CFT proposals that unincor- 
porated firms should be 
deprived of such allowances. 

Similarly, individual investors 
can make tax-free savings in 
pension funds, life assurances 
and housing under toe existing 
personal income tax system. It 
might be felt that there was no 
reason to restrict the forms in 
which individuals could make 
tax-free savings to these three 
types of assets. We would 
certainly agree with this view, 
as such an extension of the 
forms of tax-exempt saving for 1 
individuals would be a signifi- 
cant step towards a personal 
expenditure tax, a development 
that we would warmly welcome. 

Overall, the objections- that 
the Green Paper raises to the 
CFT and its integration into 
the existing tax structure do 
not appear very .persuasive. In 
fact we would argue that the 
present corporation tax already 
incorporates many of the 
features of the proposed CFT 
but in an unnecessarilycomplex 
and distortionary form. Far 
fro m be ing "a radical departure, 
a CFT would be a logical 
simplification of existing 
arrangements. 

Jtremy Ediwsnfx and Celm Mayer are 
Fallows of Sr John’s Collage. Cam- 
tf’dga. and St Anna's Collage. Oxford, 
respectively and Associate rallovis 01 
the In suture lor Fiscal Studies. 


i > .Letters to the Editor 

‘ ASLEFs reasons for disruption on the railways 


V. From (he. General Secretary. - 
” ASLEF 

~ Sir, — The British Railways 
T Bpard j has' overstepped the 
^boundary between, fact and 
: fiction in . its campaign to mis- 
?: load the public about the back- 
ground to toe current dispute, 
r, Its latest " advert, entitled 1 
“ Broken. Promises," clearly im- 
plies . that the board was un- 
•^awm^vof vASLEF's- position on 
- the maintenance of the guaran- 
teed . eight-hour-day /agreement 
un til November. ' • 

: In fact, I spoke to toe board 
-'menaber for. personnel by tele- : 
-• phone, in .the presence of others 
. on August 24, shortly after tJie 
ACAS-mtoeistandiiigs were con- ; 

. eluded, to. inform him of the 
' decision .by toe ASLEF Execu- - 
. tiye r .. Committee ’ "accepting they 
two separate understandings, on 
■’ pay' and ^productivity" and re- 
iteraung the policy, "determined 
by. the membership, of main tarn- 
,• ing the guaranteed eight-hour 
' day. . . .. 

Thd board’s subsequent retifi- 
catxoirbf toe AC AS understand-' 
.’togs to ,two r separate minutes of 


toe Railway Staff National Coun- 
cil; on August 27 'is dear proof, 
that toe. society’s ^policy : oirthe 
maintenance of the eight-hour 
day was not consideredjby the 
board : at that time to invalidate 
either toe agreement on pay, or 
toe general commitment to talk 
on productivity. -• 

... On September 2 ASLEF 
representatives made their posi- 
h tihq absolutely. ?tear at a meet- 
ing of the Railway Staff Joint 
CoiuidL {Locomotive Section). 
As toe- agreed minute state: 
“ The .-ASLEF; representatives 
indicated that the ■ principle of 
retaiuing the. eight*6ur guaran- 
teed day ..was a fundamental one 
so far as tl«to 39^*7 was. con- 
reraed.’V . ■ S f : : . 

It-’’ is .therefore nonsense to 
suggest toat Ihe board had any 
doubts about ASLEFs position: 

: .Tbe board’s -i radden conver- 
sion. to" the Ictea that toe- two 
ACAS uhdto&tandings wefe con- 
ditional" uporf one. another, and 
that toe undeitoahding on pro- 
ductivity required our accept- 
ance of the board’s proposals on 
variable . rostering, dates from . 


late December, and was occa- 
sioned by the decision by toe 
National Union of Railwaymen 
to accept flexible rostering for 
non-footplate grades — no doubt 
seen by toe board as the ideal 
opportunity to isolate footplate 
staff from their working col- 
leagues. Not until December 17 
did ASLEF receive any indica- 
. tion that toe board would not 
be prepared to pay toe 3 per 
cent ' increase due to footplate 
staff in January. 

BR’s willingness to reach an 
agreement on productivity 
acceptable to all parties must 
be judged from its refusal to 
continue negotiations within toe 
terms of toe ACAS understand- 
ings. ’The Board's insistence on 
the abolition of toe guaranteed 
eight .hour day is a calculated 
and unnecessary act of provoca- 
tion in defiance of both toe 
letter and the spirit of the 
ACAS understandings. It is this 
shabby piece of confrontation by 
the Board that has caused the 
present rail dispute, 

Ray Back ton 

9. Arktcright Road, NW’3. 


yet -understood that the railmen 
are landlocked. A forwarding 
agent will charge anything 
between £50 and £80 -just to 
bring toe 2 kg package into 
toe UK. And the airlines 
“ Fine, bur make sure you have 
it picked up at Heathrow." No 
consolation that the same 
length limitations apply when 
you try to mail packages to 
Albania, .Bulgaria and Italy. 
Why so difficult? 

Christian Estrup. 

P.O. Box 218, 

Horsens. 

Denmark. 




Doubting die fares 
in London - 

Frma-to^^en C, Stables . . 

do think that a news- 
paper : of . your standing . ought 
to , realise ‘ how very • rhiste 3 ^tog 
-it can be -to report things by 
percentages. I refer specifically 

* > to' your report " (January. 91 
‘ about- London travel fares, say- 

inssKat (bey will have to double, 
So they may., but if so. in many 
cases they will still .be less tban 
fanfis in September last, 
no-one would understand that 
from "your headline and article. 

UntD toe recent cuts I paid 
5Qp from. Victoria to King s 
Crofe by Tube, and .since then 
only 20p. Double that and I 
. shaU still be. paying less than 
last September. Htw mislead- 
; ing.jcan ytrdbie? 

* (Rfiv> .q. G„ Stables. 

' Fwmtoad, : i _ ' " 

Easons Green * Framfiela, 

Edrd Grade’s ~“ 
-departure 

Fro m 3fr Spike U llligaiu 

Sir— Mitirr jimpl ^ from 

enteminmjent world .will be de- 
pressed 'at toe forced ’.resigns* 
tiett^fbr^owed it was) of Lord 
Grade." 1 ;' v'-'v v • -* 
it was Lew and-LesIie Grade’s 
eray "which - helped' hundreds 
__ r -, us. jmst war 

variety ' jear& But ? for town « 
Oypuld not. breasted.- - They 
£ only left itr-when they realised 

* television Jim.tfae coming thing* 


OK.'so “Raise the *Etanic" 
-lost 7s lot of money. I ask you 
wfaal cote pany_ doesn’t? ..What 
.about British' Xeyland? At least 
Sir Lew ‘never went cap in hand 
begging ..for -money: - it was 
always on a business, basis. 
What other Chairman would 
you find at his desk" at six and 
seven in the morning?’ Of- course, 
he gave a large golden hand- 
shake, he was a big man, he 
still is a big man. ' 

Holmes a' Court has got the 
• Company; nor because he is in- 
. terested in. show business, but 
because he is nothing more than 
.a" business, magnate. 

I am appalled at toe short 
memories of the world of fin- 
ance. 

. This man could have made it 
again and again if lie was just 
given breathing space. " . .. 

Spike MiHSgan, ... 

. '. 9 t Orme Court, ‘ 

London, W2. - 


Shareholders’ loss, 
over takeover bids 

From Mr F. Moseley. 

Str T — J have bad t be misfor- 
tune over toe last four years to 
own a small numfber of shares in 
three companies which have 
been the subject of takeover bids 
referred by toe Government. The 
companies were -Serck (referred 
-twice, after approaches by AE 
and. then Rockwell: finally an 
unref erred bid by a third com- 
pany BTR. succeeded at arouna 
one third of the value of the 
original AE bid in real terms). 


Davy International, and now 
Royal Bank of Scotland. 

In each case permission for 
the bid to go ahead was refused. 
The reasons were: Serck, some- 
what ironically had monopoly 
problems with both bidders; 
Davy, the ” British” interest; 
and Royal Bank, the “ Scottish ” 
interest. 

The Monopolies Commission 
pronouncements seem extra- 
ordinarily spurious, unconvinc- 
ing and high handed to one who 
has seen the value of his pro- 
perty reduced in value by any- 
thing between one-third and 
two-thirds as a result. Unfortu- 
nately as things stand there is 
no remedy. Dare I hope that one 
day the “Surrey’* interest win 
prevail? 

F. Moseley. 

SO Somertille Road, 

Cobham, Surrey. 


Viking swords 
stay in Denmark 

From Mr Christ ton Estop 
Sir. — If a Viking in Denmark 
were to send a nice sword to his 
ancle in England, no problem. 
"VVfcen, however, a fe w y ears 
later, one wants to forward a 
parcel that by necessity exceeds 
one metre jn length ( to be exact 
158 metres) from toe Continent 
to toe UK, it seems io be an in- 
surmountable task. The postal 
authorities say " Too Ion?.’’ not 
a chance. The railway people 
“ Yes, we send to all countnes. . 
Piatoer challenged, they add 
** UK, Sony no " with a pitying 
look that the inquirer has not 


Equal opportunities 
for Poms and Anssies 

From Mr Richard D. Johnson 

Sir.— The- bid by Australian- 
Robert Holmes a’Gourt for ACC 
highlights a little-publicised 
double standard. 

A British company bidding 
for an Australian company 
must get the consent of the 
Australian Foreign Investment 
Review Board for any holding 
over 15 per cent. This is an 
unwieldy process designed to 
impede any take-over more 
especially since any objections, 
however spurious, by the Board 
of The “ victim " are taken into 
account. 

By contrast, Mr a’Court builds 
up a stake and bids for ACC 
with impunity. Why doesn't 
the British Government demand 
reciprocity either by demand- 
ing equal treatment for British 
companies seeking opportuni- 
ties in the Australian market 
or apply similar restriction to 
Australian predators operating 
in Britain? 

Richard D. Johnson. 

24, Schubert Road, S\Y1S. 


A tight-rope 
without a net 

From Mias Louise Bloch - 

Sir. — Barclays Bank consider 
me eligible for a Barclaycard, 
as I have just started my first 
job. It does strike me as quite 
indefensible that a bank should 
encourage me, and others like 
me, to borrow up to £5.000 at 
the exorbitant rate of 23.8 per 
cenL 

Surely It would be more 
responsible if banks offered 
young people a higher rate of 
interest as an inducement to 
sare. 

Is it unreasonable for my 
generation to expect a modicum 
of communal responsibility 
from banks or should we 
recognise them usurers, who 
guide yoan; people no to a 
tight-rope without a net? 

Louise Bloch- 
12 Bocroft Avenue, ,W2. 


hat makes Tokyo tick? 



WAKO SECURITIES is 
on the spot to offer 
personalised advice on 
investment opportunities 
in Japan 

General Manager and Chief Representative-^ • ■ 

Mr. MichisadaTomotake 


o 


WAKO SECURITIES CO., LTD. 


•Tokyo International Dept 
6-1 Nihonbashl Koamicho, Chuo-ku, Tokyo, Japan 
Tei: 03*667-8111 Telex: J24819, J28484, J28841, J23885 

•Bahrain Representative Office 
P.O. Box 30088 Manama, State of Bahrain 
Tei; 271571 Telex: 490-9710 (WAKQSC BN) 







24 


Financial Times Wednesday. January 20 1982 


t^upsids and Markets 


UK COMPANY NEWS 


half rise 
at British 


MFI’s profits jump 43% 

• *■ , 

but second-half caution 


AGB 

climbs 

to£2m 


Allied Residential ‘will 


Land 


DESPITE interest charges 

increasing from £4.S8m to £5-63 m, 
pre-tax profits of the British Land 
Company rose from £L66m to 
' £2.4m in the half-year to 
September SO 1981. After tax 
up from £58,000 to £71,000, 
'.attributable profits emerged, at 
£2.33m against 

• The directors say that with the 
' company's continuing low level 
of indebtedness and substantial 
cash resources and facilities, it is 
well placed to promote its busi- 
ness throughout the woricL 

They say cash and securities 
exceed short-term debt, leaving 
the company comfortably insul- 
ated from the vagaries of interest 
.fates. In balance shqgt and 
income terms, the group Is in. a 
strong position. 

Trading profits for lhe_ half- 
year are not always indicative of 
the year as a whole, and the 
trend of improvement should not 
be taken as a basis for the full 
year’s results, they say. 

With the continuing increase 
in net rental income, it Is the 
board’s intention to recommend 
a doubling of the dividend for 
the year from 0.25p to 0.5p. 


Espley-Tyas 
better than 
forecast 


DESPITE CONTINUING la* of 
consumer confidence which has 
affected turnover of MFI Furni- 
ture Group during the six months 
to November 28 1981, a 

significant increase in profit 
margins enabled the group to 
increase first-half taxable profits 
from £4.97m to £7. 12m— a rise .of 
43 per cent 

However, Mr Arthur Southon, 

. the chairman, says that caution 
must be expressed about trading 
in the second six months. First- 
half turnover was down from 
£90.05m to £84£7m and since the - 
end of November, sales — Includ- 
ing the first three weeks of the 
New Year sale — have been below 
expectations and severely 
affected by the exceptional 
weather conditions. 

This recent bad weather will 
affect full year figures, says Mr 
Southon, who estimates that as 
a result, the group has lost 
between XSm-£6m of sales. Also 
its January sale is being ex- 
tended to another three weeks. 

The chairman attributes the 
higher profit margins to a re- 
duction in overhead expenditure 
and a small improvement in 
trading margins, together with 
the effect of the closure last year 
of unprofitable small stores in. 
areas where the group still re- 
mains adequately represented. 

He adds that the group con- 
tinues to give priority to the con- 
trol of expenditure and margins 
which has produced positive 
results at the interim stage. The 
-chairman' describes the figures 
as “ encouraging." 

The interim dividend is being 
maintained at l.lp net per lOp 
share. The final will be looked at 
in the light of the full year's re- 


DIVIDENDS ANNOUNCED 


AGB Research lot 2J3t 

Countryside Props 2.45 

Espley-Tyas Property ... 2.31 
Estates Property Inv int 2.75 

Everards Brewery 4.5 

Group Investors int 1-1 

MFI int 1.1 

Westpool Inv int 0.34 


Date 

Current of . 
payment payment 


Ccnre- 


MarchO 


div, 

2 

2.1 


Total 

for 

year 


355 


Total 

last 

year 

55. 

35 


April 2 2.75 

March 16 4.1 
MarchS 

April 2 

MarchS 


U 

1.1 

054* 


65 


7 

6.4 

3.1 

2.62 

l.llt* 


Dividends shown pence per share net except where otherwise stated. 

“Equivalent after allowing for scrip issue. 7 On capital 
increased by rights and/or acquisition issues. {Excluding special 
LMS payment of 0.639p. 


A 63 PER- CENT leap in profit 
from marker ' research and 
information ‘systems activities 
enabled- AGB Research to pu*“ 
first-half pre-tax profit up from 
£L46m to JE2.04m- on turnover 
£&34m-'ahead at £lSm. The pet 
interim- dividend is . being 
stepped dp from : 2p to 2.3p on 
capital increased-; by the May 
rights issue. 

The company says . that 
seasonal factors, which bring to 
more revenue in the final 
quarter, are likely to produce a 
generally satisfactory . outturn 



BY LAN RODGER 


suits but Mr Southon hopes that 
it will be ** at least maintained ” 
— last time the final was L52p. 

Progress continues to be made 
in the branch development pro- 
gramme. Seven stores were 
opened during the half year, in-' 
eluding two in Eire. Six stores 
were relocated to considerably 
improved positions and three 
were dosed. At the end of the 
period, the group was trading 
from 120 locations with a total 
area, of 2.6m square feet. 

The average number of stores 
during the six months fell from 
135 to 117, although selling 
space was increased. The main 
thrust of the group is still in 
the south east, although it is 
also looking at the Manchester 
area. Poor new stores are 
planned in the current period, 
two. of which are. relocations. . 

Capital spending will .be sub- 
stantially lower, but spending on 
advertising will remain at around 
5 per cent of sales. 

First-half profits were struck 


before more than doubled tax of 
£l-6m (£725,000) and last time, 
there was an extraordinary credit 
of £372,000. The retained 

surplus emerged at £3.64m, com- 
pared with £2.75 m. Earnings per 
lOp share advanced from 2.49p 
to &24p. 

In current cost terms, pre-tax 
profits were ahead from £4.72m 
to £Q.78m. 

The group has arranged 

store-in-store ' facilities with 
several outside retailers. Harris 
Carpets has taken space m six 
outlets and Brentford Nylons is 
selling through 16 stores. Each 
company is planning to operate 
through a further 10 Stores 
within the next two months and 
MFI is exploring a simitar ven- 
ture with Staffordshire Potteries 
and a lighting supplier. 

Mr Southon, estimates that the 
store-in-store operators, who 
have signed short-term contracts, . 
can contribute about' £lm to 
profits to a fuH year. 

See Lex 


Mining and Bids 
on Page 26 


Allied Residential has reported 
disappointing interim profits 
and advised shareholders Gist 
the £lm profit forecast for. the 
year to March made at the time 
of the stock market flirtation last 
May will not be met 
Mr Michael Heathcote. chafer- 
man, said demand for residential 
bousing dropped ji wm a tica liy 
last autumn as Interest rates 
rose. Then the severe, winter 
weather made things worse.: - 
“ There have been virtually no 
sales in . the past two months 
because of the weather. We had 
budgeted to sell 300. houses to 


Share Issum ■ponwitvd-'b? JifnB.ffcff 
■ - 1979 ■ ■ 


for the year. Last time tbfe- full- 
; year total rose almost £Em to a 
record £3.86m and 35p was 
"distributed. .. 

During the six months to 
October 31, 1981. pressures on 
circulation and advertising 
revenues hit the publishing side 
where profit slipped from 
. £454,700. to £410, 000.; The 
market research division’s con- 
tribution, however, reached 
£L63m (£lm). 


the full year but we will be 
lucky to sell 200." 


• comment 


FOR TH'K year ended Septem- 
ber 30, 1981, Espley-Tyas Pro- 
perty Group has turned to - a 
pre-tax profit of £2-28m, which 
compares favourably with the 
forecast of -not -less than £L.6m 
given to last February's pros- 
pectus at the time of the placing. 

Comparative figures for the 
previous period, during which 
the company was dormant, are 
not given. - The -board considers 
they are not meaningful follow- 
ing the formation of the group 
in its present form some 11 
months ago. 

The board says that much pro- 
gress has been made in the year 
to the formation and develop- 
ment of a group with substantial 
property and construction activi- 
ties. With the quality of secured 
property projects and awarded 
construction contracts,, further 
progress is expected during the 
current year. 

Turnover for the period to end 
September was £29.65m. Stated 
earnings per 25p share were 
lffBp and a dividend of 2.31p 
per share is recommended. 

Tax took £203,000 and mtoori- . 
ties accounted for £3 08,000. Ex- 
traordinary debits, largely com- 
prising capitalised items, totalled 
£1.01m and the dividend absorbs 
£268,000. 


U.S. important to Stenhouse 


WITH 50 per cent of toe world's 
insurance premiums being gene- 
rated in toe U.S., Mr Herbert 
Houghton, chairman of Sfen- 
■house- Holdings, tells members it 
is vital the group is strongly and 
effectively represented there. 

Stenhouse, he says, already 
has good geographical coverage 
. with a significant position to the 
market, and M our policy remains 
to continue growth and to make 
our activities more profitable." 

He points out a 25 per cent 
increase in the U.S. companies? 
gross income in 2981, adding 
that as volume grows so will toe 
capacity to absorb the develop- 
ment and acquisition costs. 

He states to his annual review 
that the group's most directly 
significant development during 
1981 was the expansion of its 
Lloyd’s underwriting agency 
activities; four companies were 
acquired for £3.1m cash and in- 
volved the merger with Reed 
S teahouse's existing Lloyd's 
underwriting subsidiary: 

“In combining these com- 
panies; we have expanded and 
broadened <he group's presence 


at Lloyd's; to addition, we have 
already achieved a saving in 
expenses and we expect further 
savings to be made.” 

Mr Houghton says that if toe 
Divestment Clause, within the 
proposed Lloyd’s Bill, is enacted 
as presently worded, it would 
mean that the group’s Lloyd's 
underwriting agency companies 
“ would require to be separated 
from the group within five years 
of the Bill receiving the Royal 
Assent" 

He adds that there is con- 
siderable opposition to this 
-Clause and in view of the group 
shareholding and management 
structure, the directors consider 
it “quite inappropriate that its 
terms Should apply to us.” 

In conjunction with the Con- 
tinental Corporation, Stenhouse 
recently launched a life assur- 
ance company. Continental Life, 
in which Reed has a 50 per cent 
interest This company has been 
established, the chairman says, 
to snit the needs of UK life and 
pensions brokers. 

As reported on December 17. 
pre-tax profits for the year ended 


September 30 1981 rose by 12.S 
per cent from £7.74m to £8.73m 
and toe total dividend is lifted 
to 5.1p (4.65p) net per share 
with a final oif 3-28p. 

Reed Stenhouse. in which toe 
group has a 53.7 per cent 
interest increased its taxable 
surplus to £15m, against £13.27m, 
with results benefiting from 
exchange rate movements during 
the 12 mouths. 

Net assets attributable to 
Stenhouse amounted to £35.5m 
(£31. 23 m) at the year end com- 
prising; insurance broking 
(53.68 per cent) £27.8m 
(£23. 72m), and other interests 
£7.7m (£7.51m). 


AGB's Shares took on 7p yester- 
day to dose at 277p. T e- group 
remains on coarse for £5m this 
year which gives the shares a 
rating to toe high 20s. It’s not 
bard to 'find toe sex appeal in 
market research — prospective 
satellite and cable TV systems 
will all need extensive research 
services before setting up-, AGB 
is now well spread . inter- 
nationally and with an ungeared 
baflance sheet . continues to 
pursue an active acquisition 
policy. The shares, however, gain 
considerable strength from 
AGB's position as the only 
publicly-quoted company in its 
field in toe UK It remains to be 
seen whether this energetic com- 
pany’s management can keep a 
firm hand on a group which has 
more toon doubled Its net worth 
in just two years. The prospective 
yield, assuming a similar rise- in 
toe final, is just over 3 per cent 


very 

The group was - formed last 
spring to acquire the residential 
property interests of AtMed 
Plant Group and Thames Invest- 
ment and .Securities. . - 

Pretax profit in tbe first half 
was £150,000 after - finance 
charges of £216,000, admirostrar 
live charges of £47,000- and a 
p re-acquisition loss at £29,000. 
Tax took £19,000. .Turnover 
amounted to £3.36m. 

The 'directors have declared 
the forecast lp interim dividend; 
the prospectus also anticipated 
a 1.45p final dividend. 

The directors said the group’s 
contracting division would cease 
operations, resulting' in substan- 
tial economies. While higher 
stocks than normal for tods time 


'since April — 

- placing .Current 

Company • P™* 

lntervislon*S ....—-w. ..IIBp -.WR 
Blo-KII Chemical* 70p 1 

Wills ire t — . — .-—it . ; . 

Webber Hecno / ' 

Components. 

.Baker SeetroniCsS 80p :i 

True* Securities 15Dp . ; S32p 

Thame* Investments... M8p ' WP 

Hernia mat .... ' S0p.t]gP 

Euro flame . ....: .. fP V|W. 

Allied Residential! . .- •»!¥.■ * 

Stanelco ' — 83p--- ■ 35p 

* formerly John Baker..- (Insulation). - 
f acquired by L sports' ..Industries >ir 
July. 1980 ftr 1B0p per Share. -. 
t formerly Lontrim. -. 

S dealings under Stock Exchange -rnjie 
■163 (2). ’ -/ 

V listed on the Stoc£, Exchangee 


year were being heM, ttfcs pta: 
toe -group in a r strong Dcrition to 
take advantage if : to* .» v aa 
upturn in toe market.. 

Allied’s failure to '- meet its 
profit forecast is another setback 
for Tzing Hail Securities, whtcb 
sponsored rtoe placing last May. 

In ^recent weeks, 'two Tiring- 
. sponsored ' companies . on toe 
-Unlisted Securities' Market, 

. Stanelco and Euroflame, have 
reported., difficulties. Botfh have 


tumbled into loss within a year 
of bring floated. Eurofiame, like 


Allied Residential!, made a profit 
forecast ‘ Which will nat. be met. 
Tring Las also suffered from. 


ifoe recertt .deacons, of some .of 
' *te.- 'cdqpatfes to} seek : rttwr 
. adtisris ‘ Trost fiecurittes. for 
■etam^e fcas moved to Antony . 
Gtofcs,.wtule Seelemat tad Afiied 
Residential ‘ have also dropped- 
/-Triog as sit advisor feat have-not : 
yerappoint-ed a Te$rfacemeni 
, . - Mr. -Gluts u Traqg 

dSroctok agreed thffit toe rece*t 
setbacks -have -hint- toe_bqa$tEgv 
rep u t ati on . ' 1': 

•!; ^.Tbere ls notoing we can- do 
■ 'about . M until • these, thjosB.are - ' 
flushed' out I houeriir oan^.see 
what 3se to ere is to flash .oat" 

He felt T^gfeari:be«fc un4u{*y 
. in bringing issues to . The market' . 
just before toe economy -tw* a 
very bad tun-; gnd printed ta 
■toe fact that rrepdtaftie axoiint-; ■ 
hag and legal flrins liad berai. 

• used in preparing- prospectuses 
'.and forecasts- JSrhst .and .. 
TWnnney.? mrit Sm*to» 

Braflhwatte . , exaSmteed-. r afflled ' , 
ResMentiai, Sanons- Cphen ; Fine 
and Co.: and. .Can39lte.;reivirared : 
"Enroflamri - : • 

• “I don’t itoinK rll ever; put' 

- my rignature to n ^profit forecast . 
cver agauV’ Mr Bataer 's&d. ' 

He eaid Triug ^ iiad teff a 
. toffictat time in 1981"“ but we’re 
is., w tauquoted 
-company arid. &£ i- abarfess ; ^ie 
traded . by ■. private. . toeaty^ . 
Bargems took ptace 
June hut Mr. Bakes grid toe- 
price last week was 22^- , , 


Hickson & Welch: better tr4id 


Westpool pays 
same interim 


YEARLINGS 

The interest rate for this 
week's issue of local authority 
bonds is IS i per cent, down a 
quarter of a percentage point 
from last week and compares 
with 131 per cent a year ago. 
The bonds are issued at par and 
are redeemable on January 26,- 
A full list of issues -will be 
published in tomorrow’s edition. 


AVAILABLE revenue dropped 
slightly from £892,000 to £686,000 
for Westpool Investment Trust 
for the six months ended October 
31 1981 after tax of £335,000, 
against £328,000. 

The interim dividend is being 
maintained at 0.344p per 25p — 
last year’s total was an equivalent 
1.106p before a special payment 
of 0.639p In connection with the 
acquisition of London Merchant 
Securities. 

Earnings per ■ share are 
reported as 61p (same). ' 

The group’s share of the LMS 
dividend— £826,000 (£688,000)— 
is £493.371 which includes tbe 
associated tax credit 


■# 

Racal heads for 27th 


consecutive record year 


The unaudited pre-tax profit for the 
half-year ended October 9th, 1981, 
amounted to £38,436,000 (1980 - 
£26,525,000) an increase of 45%. 

Taxation for die half-year is estimated at 
£14,798,000. Turnover for the half-year was 
£303^503,000 (1980 £240,626,000) an increase of 
26%. An interim dividend of 5.06% net of tax 
(previous year 4.6% net of tax) will be paid on 
February 15di, 1982 to shareholders on the 
Register of Members on January 15th, 1982. 

The improvement in the performance of 
Decca continued with sades of Capital Goods : 
increasing from £66,000,000 to £93,000,000 (plus 
41%). The contribution to pre-tax profits amounted 
to £5,273,000 (previous year Loss £5,211,000). 

The Radio Communications Group had an 
outstanding half-year with both sales and profits at 
record levels. 

Sales of the Data Communications Group 
increased by 24% but as a result of intensive 
competition the previously good profit margins 
were eroded considerably. The contribution to 
profits therefore was substantially lower than for 
the previous year. However the second half of this 


financial year will show an improvement in the 
profit margins of the Data Communications Group 
and the underlying trend of business in the 
remaining activities continues to be encouraging. 

The Hoard are confident therefore 
that, subject only to circumstances beyond 
their control, the results for the full year to 
3 1st March, 1982 will be very satisfactory 
and will prove to be another record— the 
27 th in succession. 


r 


Five year comparative summary 


Half-year 

Turnover 

Pre-tax 

profit 


£000 

£000 

1977 

89,886 

19,398 

1978 

99,894 

24,323 

1979 

112,916 

25,263 

1980 

240,626 

26,525 

1981 

303,503 

38,436 


RACA 



The Electronics Qoup' 



Racal Electronics Limited, Bracknell, Berkshire 


NO MORE than a . modest im- 
provement Is expected in the 
troubled. -chemicals division, at 
Hickson - and Welch (Holdings) 
in toe .' coming year, and even 
this will depend on costs being 
contained. But a further advance 
in profits is anticipated from toe 
group’s other major activity of 
timber preservation. 

In his last annual statement 
before retirement as ; chairman 
Dr T. Harrington says that 
because of present conditions his 
report is; “inevitably tinged 
with caution *’ but the group has 
botff tfie potential and capability 
to take advantage of any new 
opportunities. 

Looking at the chemical side, 
which, for 1980-81 dived from 
pre-tax profit of £2. 67m’ to 
-0.1m with losses in two of its 
three subsidiaries, Mr Harring- 
ton points out that the weak 
chemical market has prevented 
increased costs being recovered 
through higher selling prices. 

He points out that even when 
the recession is over demand in 
the UK for some of the group’s 
chemicals will be less than that 
enjoyed four or five years .ago 
While world demand .for 
chemicals will continue to grow, 
a much larger proportion of these 
products is now made abroad, 
particularly - in developing 
countries where costs and stan- 
dards are often lower. 

However the group has a toe- 
hold in supplying intermediates 
to pharmaceutical and agro- 
chemical outlets which the 
directors expect to remain a 
growth area; "We are stepping 
up our efforts in these fields and 
also in other directions where 
we have identified scope for ex- 
pansion.” 

Overall capital spending was 
down from £<L2m to £3.fm last 
year with higher expenditure in 
the timber preservation com- 
panies but no major new projects 
in chemicals. 

As reported January 8, group 
taxable profit for the year ended 
was down £294,000 (op £1.7 9m) 
with cash up from £l-31m to 
£L59m and bank overdrafts at 
Exports were marginally higher 
at £29.3ra (£28.6m). 

At yeaneud cash net liquidity 


Japanese seek 
U.S. coal mine 


FROM Tokyo it is reported that 
Japan Coal Development appears 
to be favouring the joint devel- 
opment with U.S. interests of 
steaming coal prospects in 
America’s mid-west 

The Japanese company, which 
was set up two years ago, has 
received a number of joint devel- 
opment proposals from American 
mining companies. It now seems 
to be particularly interested in 
the proposed opening up of the 
Coral Canyon mine in Wyoming. 

Company officials decline to 
go into detail, saying that signi- 
ficant negotiations have not yet 
started, bnt tfiey concede that 
proposals from toe Coral Canyon 
and other manes are worth 
serious consideration. 

Rocky Mo an tain Energy, a 
Union Pacific Railroad sub- 
sidiary, has offered to sell a 30 
per cem equity interest in Coral 
Canyon, depending on the 
Japanese company's commit- 
ments to taking production from 
the venture. 

The U.5. company has com- 
pleted a feasibility study and 
has told toe Japanese that it 
would send officials to Tokyo late 
this mfoth for a technical brief- 
ing on the study. 

Under the proposed plan the 
coal mine wouJd start production 
around 1985, with an annual out- 
put of more than 2m tonnes for 
shipment to Japan. 


SPAIN 


January 19 
Banco BHbu M 
Banco Cantnd .. 
Banco Exfiarior .. 
Bancs Hispano .. 
Banco ind. car. 
Banco SdiTOiKfW 
Bonco timulio .. 
Banco ^Vizcaya .. 
Banco'* Zaragoza 

Dragadai 1 

Espsnote Hue .. 

Ftcu 

Gal. PreoiBdoa... 
Hid roll ........... 

Iberduara — 

PmroJww . 

PetraMwr 

Sog»fi»* ...... 

Telefonica . 


Prica 

•L 

350 

356 

316 

323 

IIS 

3GB 

219 

387 

E? 

U? 

to 

01.5 
43 

68.7 

54- 

85.5 


'+or— 

+7 

+B 

+2 

+5 


*+4 

+3 

+12 

+2 

.+7 


1+0.5 

-0.3 


:+a 


Un+on Elect. ., — m—,. 


to -2 
71 -1 
8517 1+0.7 


September. 30, 1581 slipped from 
£6. 48m to: £&28mr on turnover of 
£90.9m (msm) but the. net 
dividend was held at 7.5p. 

interest costs 'were halved bat 
there was a £%$8m loSs at Hick- 
son and Welch Ltd after £0.X5m 
redundancy costs, and * SOmox 
write-off on plant • ‘ -v' 

. ‘ The declined os the chemical 
side was partly offset by a rise 
from £3.05m to £4.06m pretax 
on sales of £3329m (£2&87m)-pri 
timber products, ■ and from 
£241,000. to £505 <000 on sales of 
£15 ,7m (£16.3m).'frqm budding 
materials. Intercompany sales 
amounted to £15.57ta'-I£llJ12an).. 
£L07m (£485,000),-: Apart; from 
a higher working capitahrequire- 


EUROPEAN OPTIONS EXCHANGE 



.. •; 

Peb. 

f ? -.May -- - 

Atio. 


Series 

VoL: 

Last 

VOL 

Last. 

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Last, 

Stock ; 

GOLD C 

#370 

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9,40 

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230 

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GOLD P 

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GOLD P 

8460 


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123* NL 81 87-81 

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FJ24.70 

AKZO O 

F36 

305 

130 

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F37.60 



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TOTAL VOLUME IN COHTRActS ; 

473ft 



A= Aiked . 

B=Bld 

C=Call 

•- P 






. r> 


r’j 


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rn’ent po Significant :lncre3^ in 
- btuxemiig is ; expected in Qfe 
current year*-.- . i 1 " 

; An analysis, of- salito' and profit^ ' 
before' investment ihccsje, on a , 
'geographical -basis ’- shows : Eh; - 
£000 s:'UK £67.822. (£75^70): and ; 
£3,ifi2 (£3,9522;'- SoutB Abies. 
£9^14 (£8,078) and £8S4^(£«78);- } 
-New- Zealand 7J924 ( £6^341 >--arid » 
£922 <£655) arid South east Asia . •. 
£6,013 (&.707) and £73k (£678)/ [ 
At ; -pec«riber 431’ Kuwait In- , 
-vestment : Office held an .8.61 per ; 

: cent ' interest, Britanuic Affiar- 
arice 6.85 per cent and Frrideri- 
. tial Assurance 'BBS. per cent. - • 
Meeting; ’ 140.-.' " Buckirigfiam . ‘ 
Palace Road, SWun Februmy lJ . 
atlL30 .am- - 


•-J 


- :li 


i-i 

if . 

1 


fer-f 


> L- ' ^ 




M. J. H. Nightingale & Co. Limited 


27/28 Lovat Lane london - EC3R 8EB . Teiephmie 01^2)’ T212 


1981-82 
High Low 

120 100 
7S 62 
51 33 

2D1 187 
10« 82 

129 97 

73 39: 

78 4« 

1« S3 
105 100 
113 35 

130 10B 
334 250 

69 61 

222 167 
15 10 
SO 66 
4A 23 
103 76 

263 212 


Coir pa ny 

AB? Hldg*. IOdc CULS 

Alrsoruco 

ArmitOM & Rhados 

Carrion Htfl 

Deborah Sorvlco* 

Prank Horaoll 1. 

Fradarick . Parker 
Gbois* Blair 

IPC 

S*b Coitv. 

Jsckson ' Group- ^ £ 

James Bur rough 

Robait Jen kina. , - 

Scnmons “A" 

Tonfajr & Carlisle 

Twin lock Ord. 

Twlntock 15pcr 
Unilock HoWfings :..^ 
Walter ‘ AfoMndcr-.! :U~. 
w. S. Yam* i ....... 

Prlcw_ now lya^iblft 


• ' ' • • ■ ' p/e ■ 

■ Gw»- Ytehf Pu«jr 

Pnca Change ^ Actual noS 

.1» +.1 •TOd.B.U. — : : 

« 63 11.0 1U/. 

JS *■— * 4.3 13 U 8.V 

201+ 2 ; 8.7- .4^ ; *Jt 11.9 

,5 ’ -*»■»* 7.J - 

m + .1 BA S.0 A*- 2Z3 ; 

■ -j— V; «;**■ ytj- . . 

106 . — \1N-7,>; 1B.O - — .C 




1 *5; .. — ■ : :*J3 - 7 *. iocs 


-230 . ~ . V& - 12.5 r . .05 - - _ 

r ^ : aLf-v-aik 7.9 

1S7 y 10.7 gur 

• 74 : ‘-‘"i-v -jib- 

■S" -T- 5*9 

• • -T.-1 . , 64 • . , 8# C 

■ 216. .... — -Ma c W. 63 . 


.h 


ije.'on'^w^r j-t- i/' •; .?• 




THE TR1NG HAI^; 

■ USM : INMX ::y. 

mi 

close of business l9a/82 : 
-BASE DATE IQ/tifW JM 
TeU 01^-1591- 


CORAt 1NMES ! ; 








v : ’ v.->~ .:-^j 


-1 . 






if.-. 

.1- 





25 




rise 



£1.3m 


FULL-YEAR . pre-tax profits *of 
-- .vys.de 'jPropertieK, tip. some 

- 45 per - efflrt . &ntn ,. £903,000 to 

• - £l-32m,- -confirm. ‘ we •’ffiroctfcHrs’ ‘ 

• -interim . f exportations*^ which 
. • included % «cohd-half .contrfbu- 

'Jon from’ raiBiBenaii- property 

- deveJbpnaeot . ^- : .-••-* • ■ 

• And. as forecast;* .fbe final 

- diVfddt^ -jfe iiaafeaaed to 2.45p, 
'5 against’ 2 .ip£rMftjDg the total to 

v 3.8Sp vmt: J**\ 23p share 

\ for ®e period ended September - 

• 30-1981.y v ^ 

‘ - THr;^an,Cheri^, : tI^'c^^ 

‘^-says ^i^ j^roTXp expects .farther 
•-^progress ■ n> the current year. 

' mbtitha\^he taxable 

VTsitrphB Trail fallen: to*&07,60G, 

' -torn parcel *wtai '-£r53,000. ‘ 
v 7 ^-Turnover tor ’ ■ the:; "’ year/ 

“frtni -fitLSm to fffim 
." and the: pre-tax figure was after . 

- Interest, well -'ahead ■ from 

"£932,000 ."to £L44m/ . ■ 

• . ~ During, toe; year tivoT large 
[. jrapenriart;et scheme? were com- : 

- di eted .an d sold, '.and the- group’ is. 

. ;CTHTpniay. involved . in. A number . 

• of other ocamnerdal develop- 


ments, of which .two office 
schemes are nearing completion. 

• 11 hoped that a further two 
retail shopping schemes will be 
finished by next September. 

Terms have "recently been 
. agreed for the purchase of 
. several further rites, " the 
directors state. . 1 
Despite difficulties In the . 
bousing market generally, the 
■ housing - > division': ; continues to 
-achieve a reasonable ’.level’ of 
business, with the group’s part- 
exchange and mortgage subsidy 
incentive schemes 1 continuing; to 
prove “ most effective." 

-After tax 'of £99,Q00 (£90,0001 
earnings per share, are shown as 
20-Sp (13.6p) representing a 

return on shareholders! funds of 
25 per cent. Borrowings at the 
year end were induced, from 
£8.6in' to £5.8ih. “ 

The retained balance, emerged 
ahead- from £603.000 to- £98U00 
after dlvjdetids r ; coet of £231,000 
against £210.000. ' v 
. On. . a* CCA basis/ the . pre-tax 
fignre is reduced’ to £908,000. 


InsiireKS declare higher 
bonuses on life policies 


. -HIGHER, RATES pf -reversionary 
bonus haVe beep declared for 
" 1981 by 1 ' the ]Ufe,! Association, of 
Scotland, a mediher : of the Dutch 
Nationale Nederianden Group. ^ 
Tor irKliyiduaJ life and pension 
contracts, the rate applied to the 
sum assured ig maintained at, 
• - ■ £4.50 per: cent; but ...the Trie'' 
applied "to attaching bonuses • is 
... raised by £1 to £5i>0 per cent 
- • S:ich ah increase, has its greatest * 
--/effect on the longer-term con-' 
.1 v. i tracts, . For Nicies taken out 
- ".before October 1970, Die . bonus 
, .iatef is increased by £1 to, £6 
_ 1 per ‘ cent of the sum- assured 
... ^, : ->n]y./ ; ' _■ 

" „On self -«mpl oyed and' hew 
T ' ; code} pension, policies the rate 
. ^-appiifed ’• to /the i basic - annuity ', 

. •^Isbwr-.nt .*££75 ’per cent,- but the 
! _ • /ra&AppUedto. a ttaitoingb onuses 
rises :Xl' to £5.75 per cent. The 
pre-October 1970‘ con- 
-"'Vttracte is liftoff by £1 to £6 per 
. u-isflosi-pf the basic annuity. " 

' / ■'However, - the .capital, and 

. . ;;-^_retfrement bonus rates paid on'- 
. .- /vdeath or maturity claims or when 
• the. pension commences is main- 
tained at the 1980 level • of- 35 . 
.. /^PCr cent, of attach ihg. bonuses for 
October IffTd Cwitracts ; and 20 
. ? per cent of attaching Jxmiqes for 
;.-i Others.' •. - : 

Clerical. Medlcal and General ' 
Life Assurance Society ■" is. : 
increasing its intermediate bonus 
rales by " keeping _ toe , Jeyel - 
unchanged 3 .but. compounding' 1 



TH 1 OTiTsRTri r 


ALTHOUGH British Cinemato- 
graph ■ Theatres improved its 
turnover - marginally • from 
£1.91m to - £l%93m, excluding 
VAT, for. lie . six tnontos. tp July 
31. 19S1 V toe' company • felt> into 
the red for .Ifae pericd inrixrrtng 
a pre-tax - ’deficit of £59^81, 
compared : with profit ; of 
£13.436. r'-; - ,V . 

. Turnover- In the second half 
h2s . also improved, hut toe 
directors warn -that pressure on 
margins is ! continuing and 
despite . efforts, to .raise pn*t- 
abHity^a further loss is expected 
for toe six months, to • January 
31. For 1980-81 pre-tax prbflts 
dropped from £88^38 to £20,120. 

The taxable loss for the first 
Half was' after depreciation of 
£15,107 (£14,320) and .included 
net rental and investment 
income of £5.548 l £8.674). 

Tax (oak toe same at £43. 
leaving a net deficit of £59,324, 


/ against- a surplus of £13,393. 

- In accordance with the group's 
accounting : policy no provision 
- for deferred - tax was made as 
no liability is expected , to arise 
in the foreseeable future. No 
rental or development expendi- 
ture was included in the figures 
in. relation to the. Sperry Univac 
computer whjfh has still to 
become fully .operational. 

' The directors pofirt out that’ 
the increase in turnover of 
Dollonds Photographic was 
insufficient to meet the increase 
in costs of rates* salaries and 
. other expenses and to overcome 
toe reduction in gross . margins 
resulting from intense competi- 
tion. toe economic recession and 
stock losses due to fluctuations 
in toe value oi. sterling- 
' . As already’ known- toe group 
is planning to change its name 
to Doiloods Photographic 
Holdings. 


\ Inter-City deficit rises 


THE DEEPENING recession, and 
’high •; interest rates meant 
taxable losses of £250,000 com-: 
pared io £216.000 previously for 
Inter-City Investment Group tor 
toe half-‘"year ended June- 30 
1981 r. Turnover was down to 
£4.43m -f£5.07m), toe lowest in 
five years... * 

Jflr J. Harris, chairman, also 
-attributed lower turnover and re- 
duced-. profit • margins -to un- 
seasonable weather and a -high 


level of bad debts; He says action 
has beat . taken to. . effect sub- 
stantial economies in overheads 
and employee costs but, as toe 
benefits .of these wfll not be re- 
flected v until 1982, he predicts a 
loss for toe six months to Decem- 
ber 31 198 L 

•’ He dpes, hoWever, anticipate 
a return to profit in 1982 as a 
result of a major change in buy- 
ing policy aod source of supply 
for the wholesale ' distribution 
division.- — •*. • 





: Profits from chemical operations were lowwwith conditions in too 
ax months to 31 March, 1 381 particularly difficult. 

; Despite cost saving measures, the chemical side continued to be 
affected by increased costs of energy and raw materials, end the -. 
effect of the strong pound on exports in the first half of the year. 

Profits from timber preservation activities improved, 

Z dm ovmseassubsidiaries. Activity in fencing materials, fire retardants 
mid other specialised products has increased. 

: Future prespectsshouU provide oppor^ties^OTex^iWOTirf 

.business fit timber reservation and building materials, but m pruant 
.ftjbdhfiw no mom than a modest improvement can be expected m 
tiwchamicaJ operations. 

final dh«W^pwsharefof1$Sl/^ 

tOlal of 7^fa toe yeri-tha same as last year. 


EPIC up 
slightly 

PRE-TAX income - Of Estates 
Property Investment Company 
edged ahead from £1^2m to 
£1.25sn for toe six months ending 
October 31 1981 and the net 
interim dividend is being held 
at 2.75p per 25p share— ft final 
of 4_25p was paid last year from 
taxable income of £2 ,49m. 

Rents' receivable fbr the half 
year totalled £1.78m (£1.63m) and 
net property income was also 
higher at £1.63m. against £1.51m. 
Net interest payable declined 
from £202.000 to £182,000 bat 
ground rents payable increased 
to £197,000 (£84,000). 

Tax took £436,000 (£390,000) 
leaving the surplus available for 
distribution lower at £815,000. 
compared with £831,000. 


The following companies havs notified 
dates of hoard meetinga to the Stock 
Exchange. Such , meetings are usually 
held ior the - purpose of considering 
dividends. Official indications are not 
available as to whether dividends are 
interims or finals and the subdivisions 
shown below are based mainly on Ibsi 
. year's timetable. 

TODAY 

I nt eri m s J a mes Austin Stsel. A. 
end J. Seller, Midland Truat. New 
Wftwatersrand Gold Exploration. 
Property Security Investment Trust. 
Stock Conversion and Investment 
Trust. 

Hneb^— Anglia Television. Arbuthnoc 


BOARD MEETINGS 

aiiiea ham notified Sterling Fund, Bootham Engineers, 
inga to the Suck Gestemer. Lookers. Tate and Lyle, 
■tinga are usually Trusthouse Forte, - Vogelairuisbult 
ie of considering Metal. 


Everards ahead at year-end 


FUTURE DATES • 
Interim* — 

Crouch Group 

Davy Corporation 

Millards 

Priest (Benjamin) 

Somerville (William). 

Wellman Engineering - 

Finals 

Glass Glover — . 

Hill and Smith 

Imperial Chemical industries 
t Amended. 


PRESS CONSTRUCTION 


As part of a reshaping of the 
engineering construction group 
William Press, the UK con-' 
struction subsidiary William 
Press and Son is being renamed 
Press Construction. 

The realignment of the group 


companies 'has been enabled by 
a scheme of arrangement result- 
ing in the creation of a holding 
company William Press Group to 
replace William Press and Son 
which was both the parent and 
a major trading company. 


TRADING profits of Everards 
Brewery improved by 10.4 per 
-cent from £1.39m to £L6m in toe- 
year to September 30, 1081. 
Profit was maintained, says Mr 
R. O. Steel, the chairman, despite 
incurring considerable expendi- 
ture In preparation of a new 
■site. Turnover of this Leicester- 
based brewer increased from 
£13.28m to £15.37m. 

The total dividend is raised 
f ram 6.4p to &8p with fin 
improved total of 4.5p j(4-lp). 

Mr Steel says toe. company 
maintained a . rate of growth to 
show an overall increase In beer ‘ 
barrelage of 6A per cent, while 
the industry generally was con- 
tracting by 5.5 per cent For the 
first time, trade exceeded 100.000 
barrels with toe gaig coming, as 
in the previous year, in free 
and take-home trade. 


The wine and spirit company. 
John Sarson and Son. with its 
small retail arm, has been much 
more effective and profitable, 
and he views the future with 
increasing confidence. 

With the increase in its 
overall trade and the cost of 
work on the, new site, be says 
the timing of the availability of 
Tuborg was an opportunity to be 
seized and exploited for mutual 
advantage. 

Everards negotiated a fran- 
chise agreement covering toe 
whole of the Midlands for 
Tuborg Pils and Tuborg Gold, 
-and this will permit it to brew 
these beers’ under licence as 
target barrelages and production 
facilities mature. 

It is planned, in the long 
term, to build capacity to pro- 
duce Tuborg lager at its new site 


in Narborough Road, Leicester, 
but this will be financed oot of 
earnings in order, to guard Its 
independence. 

A new public house, replacing , 
the old Crow's Nest, has been a 
notable success. It cost £280,000 
.. Property disposals during the 
year resulted in profits of £2,000 
(£141,000). Tax charged was 
down £749.000 to £642,000, and 
after dividends of £153,000 
(£145.000). retained profits were 
higher at £806,000 (£639.000). 
Stated earnings per £1 share 
were up from 3S.3p to 47p. 

CCA earnings per share were 
29p (27.6p) from profits nf 

£1.24m <£1.32m). The company 
intends to call an extraordinary 
general - meeting at which share- 
holders will be recommended to 
revert to private status. 


them on an annual basis instead 
of triennfatiy." Thus, the present 
rate of £4.80 per cent of the sum 
assured and 'attaching bonuses 
Is equivalent. to £51134 per. cent 
’tm a" three-year basis: The com- 
pany' intends 1 to move to annua) 
. declarations after toe next three- 
: year declaration is made for the 
i* perioiTtcS December 31 1983. 

. . Higher rates , of : reversionary 
and terminal bonuses have been 
. declared by the National Farmers 
-Union Mutual Insurance Society 
and its suh&idiary, Avon Insur- 
ance Company. , • . 

/• The new. rate for NFU life 
and- endowment assurance is 
improved 40p to £6 per cent of 
the sum '^assured, while • for 
Farmers pension policies it is 
lifted 50p to £9 per cent of toe 
basic benefit.. 

‘Tenmuat bonuses In 1982 for 
assurence$..-wili be 20 per cent, 
plus 1 per cent for each year 
prior to 1980 applied to total 
bonuses. Previously, toe 1 per 
cent appUed for each year from 
.1970. .. On formers Pension 
FoHcdes toe rate is 60 per cent 
plus 1 per cent for each year 
prior to- 1380. 'of total bonuses. 
The 1' per cent is a new addition. 

. - Avon has lifted its reversionary 
befius fate-for assurances by 4(H) 
to £&60 per cent of toe sum 
assured by und 5©p to £9 per 
Cent Of toe basic benefit for per- 
sonal pension contracts. The 
terminal bonus, is. the' same as 
for the NFXL ’ ; 


Jolmii iiCAifof irc£ 

Investment s 



Consolidated 


- (AQ companies mmtioped ere jncoeporatadm toe R epubl ic of South Africa) 

GOLD MINING COMPANIES’ REPORTS FOR THE QUARTER ENDED 31st DECEMBER 1981 
WITH COMPARATIVE FIGURES FOR THE PREVIOUS QUARTER 


Kandfonteiii 

Estates 


The Randfont ri n Estates Gold Mfofog Co mp any, Vvitwate m a n d, 
Unntgd . 

Issued Capital: RIG 827 106 

(Divided iato 5413 5S3 shorn of R2 tach) 


OPERATING KESULlS 

Gold 


Quarter ended aided- 

3L12JS&1 atUJSSl 31. 12.1381 


Ora milled - ton* 7 . ..... . 

KQograma produced ...... 

Yield -grama per ton ..... 

Revenue— per ton milled . . . 
Working coats — per ton nriTUd . 

1283 000 
8 412 
5.0 
R67.80 
. R29^S 

1198 000 
6 230 
5.2 
R66.77 
R32.39 

Profit - per ton milled ..... 

R38.58 

R34.38 

Uranium 

Terns treated ........ t . 

Kilograms produced . 

. Yield- kilograms per ton . . . 

. 778000 
126172 
0,162 

862 000 
154 496 
0,179 

FINANCIAL RESULTS (R000) 


Revenue from gold 

Working costs ......... 

86 985 
37486 . 

79 995 
38810 

Profit from gold . ....... 

Net sundry revenue „ ... 

49 499 
• 3683 
1554 

41185 
' 2588 

2250 

Operating profit . 

Net interest receivable . .... 

54 736 
2523 

46023 

1245 

Taxation and State’s share of 
profits. ............ 

57 S3 
6402 

47 268 
15 271 

Profit 

50 867 

31997 

Capital expenditure ...... 

Dividends declared ...... 

39 SSI 
31 655 

17 562 

Note: .. 



Average revenue par unit of gold: 
U-S. S per or. 
Rand per kg. 

441 
13 566 

427 

12S40 


4625 000 
23 679 

R68J7 

R3S.24 

R35.13 

3 351 000 
591 774 
0,177 


309 370 
150 414 
158 356 
12 034 
6 449 
178439 
8 362 
182 801 


DEVELOPMENT . 

Daring the quarter a total ctf 13 3S6 metres (14 443 metres’) was advanced 
at the Cooke Section. Development foam Cooke No. 2 Shaft in the 
Cooke No. 3 Shaft area on 118 and 12S levels, amounted to 3 234 metres 
(2 3SO metres). 

At the Randumtem Sectibn 183 metres (848 metres) were advanced 
which included development on the Rock Tunnel, Leader and East 
Beefborixoas. 


Western 


Western Areas Gold Mining Company Limited 

Issued capital: R4G 306 950 

{Diuided iota 40 3Q6 350 units of stock of SI eaaij 


OPERATING RESULTS 

Quarter meed 
31.I2.mi 30.9.1981 

Tsoi- 

ended 

31.121981 

Ore nulled — tons ....... 

Kifograma produced ...... 

.- Yield - grams j»r ton ..... 

Rev«ue - per ton milled . -■ . . 
Working costs - per too milled . 

1061 000 
4138 
3^ 
S52,36 
R48.53 

1070 000 
4387 
41 
R52.42 
R42.44 

4291000 
17 706 
4.1 
RS3.57 
R42.04 

Profit -per t 1on milled ..... 

R9.04 

R9^8 

R1L53 

FINANCIAL RESULTS (R000) 


• t 

Revenue from gold ...... 

Working costa . ........ 

55 766 
46177 

56 091 
45 414 

229 867 
. 160 403 - 

Profit from gold ........ 

Net sundry-revenue ...... 

9 5S9 
277 

10 677 
- 1001 

49 464 
2 9U 

Operating profit ........ 

Net interert reccivubie , .... 

9 866 
1 535 

116TS 

1715 

51 709 
5 960 

Profit before taxation ...... 

11401 

13 393 

57 660 


Taxation and State's share of 

profits fl 636 )' (3SO ) 2 398 

Profit 13 037 13 713 55 271 

Capital expenditure ...... 13923 7146 40205. 

Dividends declared ...... 806L — 16 122 

Note: 

Average revenue per unit of soldi 

U-8-Sper cc. 434 42T: 465 

Rand per kg. 13477 12 766 12 982 

DEVELOPMENT 

A total of 10 ."io metres if 290 metres) traa advanced during the quarter. . 
Included, in the above total is Middle Eiaburg development amounting 
to 1 249 metres (1 015 metres). 

SAMPLING RESULTS: 

The values shown in the following tabulations are the actual results of 
sampling reef development. No allowance has been made for any 
adjustments which may be necessary when computing kb reserves. 


ftsbHrg 


SAMPLING RESULTS: 

The values shown in the following tabulations ere toe actual results of 
sampling reef development. No allowance has been made for any 
adjustments which may be necessary when computing ore reserves. 

COOKE SECTION 

Quarter ended Quarter ended 

■ ; 31.12.mi . . 30 Jf. 1981 

N0.IN0.2N0.3 No. 1 No. 2 No. 3 

UElA REEF Totals Shaft Shaft Shaft Totals Shaft Shaft Shaft 
Sampled - metres .3 X70 1 062 1 861 357 3 369 1 500 1 740 129 

Channel width 

— centimetres . . . 178 163 188 172 2» 185 180 151 

Average value: 

Gold 

— grama per ton. . 7,5 M 7*9 7,2 7,0 7,1 6,9 7,4 

fun b inuli m 

grams per ton. . 1335 1125 1485 1238 1267 1314 1242 1117 
Uranium 

— kilograms per ton 0^40 0,140 0,240 0,480 0,222 0,123 0,286 0,510 

kilograms per ton 42,72 22^2 46.12 82,56 40.18 22.76 51 .48 77.01 


RANDFONTEIN SECTION . 3l 12 Q ^ er ^ f 198Z 

MAIN REEFS • 

Sampled - metres 96 210 

Channel width - centimetres ........ 88 136 

Gold 

Av. value- grams per ton • 3,5 1,5 

- centimetre grants per ton .... 808 204 

BIRD REEFS 

No development was sampled during the quarter (177 metres). 

ORE RESERVES AS AT 30.9.1981 - COOKE SECTION 

UB1AREEF No. 1 Shaft No. 2 Shaft Total ■ 

• • 1981 1980 1981 1980 1981 19S0 

Tons -000 * 1 . . 3871 ^385 2 517 1 989 6 188-5 374 

Scope width -.centimetre* « . 158 181 153 186 156 183 

Average value: 

Gold 

- grains per ton ...... 11,4 12.0 8,6 5,5 10.3 9,6 

- centimetre grama per ton . 1 801 2 172 1 316 1 023 1 607 1 757 

Uranium 

- kilograms per ton .... 0,165 0.156 0.340 0.310 0,236 0.21 r. 

-cennmetre kilograms per ton 26,07 28.34 | 52,02 57,66 36,82 38,96 

Notes: 

1. The 1990 nre reserve® were calculated as at 31.12.1900. 

2. Tne 1961 ore reserve* are related to pay limits* calculated on the basis 
of a gold price of R13 000 per kilogram (I960: R13 600 per kilogram) 
and certain assumptions an to uranium prices. At the rate ol exchange 
prevailing on 30.9.1961 the gold price assumed aips equivalent to 
U.S. 5425 per ounce 11980: U-S. S550 per ounce). 

3. Ai Randfontein Section additional underground reserves are avail- 
able on the Bird Reefr igold and uranium) but a* it is not intended 
thac these be mined in the foreseeable future, they have been excluded. 
Ore from a number of small isolated blocks on the Leader and West 
reef horizons and the surfuev tailings and rock dumps, is being used, 
to supplement gold production but is not included in the ore reserves. 


153 186 156 183 


8,6 5.5 10.3 9.6 


VENTERS DORP CONTACT REEF 
AND UPPER ELS BURG REEFS 


T.kj1 

IB 

Quarter ended 
3J.12.19S1 

Vnilm. Fl-burc Khfanrc 
diwp Indki- 

Conon KerU dual 

V~r1 Hfrli 

T'*»l 

All 

Rn*. 

Quarter ended 
■'JO.9.1981 

lihlW • EWl»r 
ilim 

lunut Kn-t dual 

Hrrf TWV 

Sampled 






- metres ... 1 236 
Channel width 

347 

591 

498 

1113 

174 543 396 

- centimetre? . 181 
Average value: 

Gold 

62 

209 

207 

185 

73 213 197 

— grams per ton. 5,8 

- centimetre 

15,9 

6P- 

4,9 

6,7 

39,2 6,0 5.6 

grains per ton. 3 127 

986 

1275 

1014 

1 24ft 

1402 3 272 1103 


MIDDLE ELSBURG REEFS 
Sampled - metres ............ 

Channel width - centimetres ....... 

Average value; 

Gold 

- grains per ton ............ 

- centimetre grams per ton ....... 

Uranium 

- kilograms per ton ........... 

- cenumetre kilograms per ton . ....'- 


ORE"RESERVES AS AT 30.9.1981 

VENTERS DORP CONTACT REEF 

AND UPPER ELSBURG REEFS 

19S1 I 


Quarter ended 
31. 12 J 981 30JJ98I 



V.C.K. 

Upper 

Elsburg 

Total 

V.C.R. 

Upper 

Eleburg 

Tons - 000‘s . . 

1071 

7 524 

8 595 

950 

8 S53 

Slope width 
— centimetres . . 

. 170 

218 

212 

179 

208 

- Average value: 

■ Gold 

— grama per ton 

9 

- 7,6 

s # 

6,1 

S.6 

6J. 

.— centimetre 
grams per ion 

. 1292 

1286 

1283 

1539 

1.289 


MIDDLE ELSBURG 
REEFS - 
Tons-000's ... 

Slope width. 

- centimetres ... 
Average value: 

Gold 

- gram<i per ton . 

- centimetre 
grams per ton . 

Uranium 

- kilogram* per too. 
-centimetre 

kilograms per ton 


Eiaburg Gold Mining Company Limited 
Issued capital: R30 30:: 000 ' 

(Divided into 30203000 unite of stock of EJ- cad & 


Stockholders are advised to etudy to« operational results published hy 
Western Areas Gold Mining Company Limited. 


COMPARATIVE ORE RESERVES: COOKE SECTION 

EFFECT OF VARYING THE GOLD PRICE 

Gold Price Equivalent Tona Average value 

R/kg. U.S. 3/tc. OOP's Gold - g/t. 

11000 ....V.."'. 360 5 730 MR ~ 

13000 . 425 6 188 10,3 

15 000 490 6 S15 9.9 


Note: - 

The consequential effect nf varying the gold price oil the overage 
uranium values it negligible. 


SHAFT SINKING 

COOKE NO. SA VENTILATION SHAFT 

This shaft was co mmis si anal during the quarter and has already - 
contributed significantly to the improved ventilation of the Cooke 
Section. 

COOKE NO. 3 SHAFT 

Sinking operations advanced from 426 metre® to 772 metre* below 
collar and included the cutting of 104 level station. The major civil 
construction work at the shaft has been completed and the building* 
have been qcropied. Part of the Ikhweri hostel for Black employes* 
has been accepted ior occupation. 

PRODUCTION 

GOLD 

Underground ore from the Randfontein Section was supplemented by 
478 000 tons <309 000 tonsi from old surface tailings and rock dump*. 
The larger proportion of sand and slimes, combined with certain modi- 
fications to all sections of the Millsile plant, has increased the rated 
capacity and throughput. The greater throughput of low-grade material 
resulted m a lower average mine recovery grade bus increased gold 
production. 

URANIUM 

Production of uranium redae ceased entrrelv at MiTHt* uranium plant 
during the first month, of the quarter when only 6 000 tons (97 000 tons) 
were treated. 


DIVIDENDS 

Dividend No. 9S nf 400 cents per share was declared on 21st December, 
1981. payable to mnnlw registered « the close of hurinew on Friday, 
22nd January. 1982. Dividend warrants will be posted to s h areholder* 
on 4th March, 19S2. 


CAPITAL EXPENDITURE 

Net expenditure on mining assets during the quarter amounted to 
R39 243 000 with expenditure on other assets amounting to R1 18 000. 
At 31st December, 1361 there were capital commitments amounting to 
R25 238 000. 


For and on behalf of tha Board 
G.Y. MSBET n - 
R. C. BERTRAM X,t7txiWT 


Notes: 

1. The combined 1950 ore reserves were calculated as at 31.12.1980. 

2. The 1981 ore reserves are related to pay limits calculated on the basis 
of a ^old price nfR13 0Q0 per kilogram 1I&8O - Ki;; 600 per kilogram) 
and certain assumptions a* to uranium pnet-s.. At the rate of ex- 
chancc-jiret ailing on 30.9. (Pel the sold price a-Mimul was equivalent 
to L'AMfi-pa ounce i.lSbli — L'.S.-aaU per ounce j. 

COMPARATIVE ORE RESERVES: TOTAL ORE 
RESERVES 

EFFECT OF VARYING THE GOLD PRICE 


Gold Price 
R/kg. 

Equivalent, 

U-S.Sicz. 

Tons 

ITO’i 

Average value 
Gold - g/t- 

11 non 

380 

R 122 

5.9 

131)00 

425 

10 486 

5,5 

15 000 

490 

LI 711 

5.3 


.line; 

The consequential effect of varying: ike gold price on the average 
uranium values vs negligible. 

PRODUCTION 

The build-up of Sloping operation* on ibc Middle Eisbtrrg reef horizon 
continued during tne quarter. 

The installation or refrigeration piping and equipment at South Shaft 
as well e« shaft repairs and matennh handling at both shafts limited 
the tonnages hoUlcd. To maintain mill throughput some 152 100 tons 
1 12S 600 tonsj of low-grade suriiice dump m.itrnai were treated with, a 
contenuemiul reduction in average recovery grade. 

SUB-VERTICAL SHAFTS 

The4E S:V. Siiaft man hobt ha-- l<vn commi -sioned and licensed and 
enmminnoning nf the n-*ck hoist ls proceeding. 

At the S.V. :i Shalt sinking and lining npenttlnn* continued and the 
abaft advanced ITU metre-. i79 met res 1 in s.j^, metres i716 metres j below 
collar with ?■'% metres i7o met rest being concrete lined. 

URANIUM TREATMENT PLANT 

The commissioning nf the uranium plant commenced during December 
IBSI and initial production of uranium is expected in January 13SJ. 

DIVIDENDS 

Dividend No. :5 i of 2rt cent* per unit of stock was declared nn Stei 
December. 1B>1 puvanle in members registered at the close of business 
on Friday. 22nd .f.inuhrv, if**. Dividend warrants will be posted to 
stockholders on 4ih March. 1982. 

CAPITAL EXPENDITURE 

Net expenditure on mining assets during the quarter amounted to 
Rl'i Jtll 0C*« and recoupment of expenditure on other assets amounted 
to R£ 00ft. At 31st December,' 1981 capital carnmitmpnLs amounted to 
R6229 000. 

For and on behalf nf the Board 
_ G. Y. MSBET njr(rtB , 
R. C. BERTRAM 0aKtart 


DIVIDENDS DECLARED (E000) 


Quarter ended 
31.22.1981 30.9.1382 


Tear ended 
31.12.10SI 
W 663 


&fcaimEsIrarff Coruwlj dated hiveftawni Cotrpeny, Limited 
Coa Btdida iea Bufltiing. Fox and Harrixon Sheets, anttl 

y.CLRax aSB. Jnhnnuesburg 2000 


or BarnstoBrotoen limited 

99 Bisbopsgsde, London J3C2M 3XE 
England 


For and on otoalf of too Board 

U. Y. MSBET n . 

£. C. BERTRAM X>voc&w 


of toeee in EngK-h nr Afnlnnp^m'araS^a^ 

leqnea aran. too ctoces oL toe transfer seceunes. 


CASTLBFORD 


V/ESTYORKSHIRE 





26 


BIDS AND DEALS 


- -I^andal Times Wednesday^ 

MINING NEWS 


NEWS ANALYSIS: GRINDLAYS BANK’S HONG KONG DISPOSALS 


Setting the perennial chestnut aglow 


BY WILUAM KAU. AND KEVIN RAFFHRTY 


FEW BRITISH banks have been 
the subject of so much •specula- 
tion as the 154-year-oM GrindJays 
Bank, and this week's announce- 
ment that' it is planning to seH 
Che bulk of its Hong Kong opera- 
tions for £7 Dm set the- rumour 
wiirk churning agara. 

Ever since its two principal 
Shareholders. Lloyds Bank and 
Citibank, came lo its rescue in 
the UK banking crisis of the mid- 
1970s, there have been perennial 
rumours .that one cr other of 
them was gaing to make a bid 
for GrindJays. 

Although at ranks 159th In 
terms of size in the world, 
Grindlays is one Df only a hand- 
ful of international banks twith- 
out a large domestic deposit 
base: 

It is the biggest foreign bank 
in India with 4,000 staff and 54 
branches. It is one of the big- 
gest banks in Zimbawe, the 
United Arab Emirates and 
Cyprus, It has 12 branches in 
Jordan, nine in Bangladesh and 
five .in Oman, for example, as 
well as dozens of other offices 


around fee world. 

While its spread of 200 
branches and offices in 40 coun- 
tries has been the envy of many 
banks, GrindJays Bank has been 
drifting for years. Its setback 
in the mid-1970s left it saddled 
with large subordinated loans 
and reiatively high gearing 
ratios . . which restricted its 
growth. 

In the eyes' of the international 
banking community, Grindlays 
Bank '■has been suffering from 
three major problems; . it is 
poorly capitalised, it has no 
strong UK earnings to offset its 
high overseas tax charge, and its 
shareholders seem to be unable 
to make up their minds about the 
bank's future. 

This has had the side-effect of 
undermining staff morale and 
made it difficult to recruit “top- 
flight” hanking talent. 

The planned sale of the Hoag 
Kong, operation 'wifi go a long 
way towards helping solve these 
problems. The £30ra capital gain 
on the transaction will give a 
welcome boost to ■ the bank’s 


LONDON TRADED OPTIONS 

Jan. 19 Total Contracts 2,6 15. Calls 2118. Puts 497. 

| Jan. April { July J 



iH 


VO'. |°X 3 

VOt. 

Equity 

close 

BP (c) ! 

260 | 

44 

12 ' 

50 ! 

1 


- 302p 

BP ie> 

280 ! 

24 

8 

•34- , 

20- 1 

40 

-■ 13 : 

fr •" 

BP (cl 

300 

5 

31 1 

17 | 

12 l 

28 

— . 


BP lei \ 

350 

I* 1 

i ! 


■ — I 

— 

— 1 

t| 

BP (pi 

280 

it 

5 i 

10 j 


14 

— 

’ II 

BP IP1 

300 

3 

17 1 

20 | 

— 

30 

— • 


BP Ip) 1 

320 

20 

9 | 


. 

— 

! 


CU (Cl , 

120 

10 



20 

r 

25 

4s " 

L29p 

CU (c) ; 

130 

2 

6 ; 

13 

45 

19 

l 


CU (cl 1 

140 

1 


6 

27 

13 

— 1 


CU (Cl | 

160 

i* 

— { 

3ia 

IS 

— 

— 


Cons. Gld (c)i 

420 | 

52 


52 

2 

62 

2 

450p* 

Cone. Gld (c)| 

460 

2 

- 1 

27 

18 

46 

— 

IB 

Cons. Gld (ejj 

600 , 

1 


12 

_ 

27 

10 

Cons. Gld (pi^ 

420 

1 

. 

12 

4 

18 

. 


Cons. Gld (p}t 
Coni. Gld (pm 

460 

18 

1 

32 

1 

47 

~ ' 


600 

54 

i i 

62 

— 

70 

— 

•* 

ends, (c) 1 

50 

31 

i 

33 

1 

36 

_ 

79p 

Ctlds. to 1 

70 

10 

73 

13 

22 

16 

•w— 


CUds. (c) i 

80 

in 

46 

7l« 

19 

9 

16 


GEC (c) 

650 

175 

a : 

187 

3 

200 

— 

319p 

GEC (c) 

700 

125 

15 . 

142 

— 

155 

1 


GEC (c) 

750 

75 

2 

90 

, 2 

112 

- 


GEC (e) 

aoo 

25 

53 

53 

3 

70 

6 


GEC (Cl 

860 

1 

30 

25 

37 

40 

22 

•1 

GEC ipi 

750 

. >2 

— 

a 

1 

14 

— 

GEC (p) 1 

800 

1 

9 

32 



30 

• ■ 3 


Gr’d Met. (ci! 

160 

32 

27 1 

55 

— 

- 40 


190p 

Gr*d Met. (eh 

1BO 

12 

199 

17 

17 

24 

3 


Gr’d Met. (c) 

ZOO 

n 

— 

7 

as 

13 

10 

1* 

Gr'd Met. (pi 

180 

2 

— 

10 

12 

13 

-T1 

Gr'd Met ip), 

200 

12 

24 

17 

2 

33 

— 


1CI (cl 

260 

63 

1 

68 


74 




IC1 (cl 

280 

43 

8 

48 

6 

. 54 




icr (c) 

300 

23 

109 

30 

45 

38 

• 1 


IC1 (Cl 

330 

li a 

1 

12 

25 - 

20 

— 


KSI (pi 

240 

*4 

70 

3 

— 

4 

— 


SCI ip) 

280 


— 

8 

1 

10 

— 


Id (p) 

300 

1 


13 

26 

18 

. 


tea (pi 

330 


— 

22 

10 

26 

— 


Land Sec. (c) 

2B0 

— 



25 

6 

32 

— 

2SHp 

Land Sec. (c) 

300 



— 

14 

IB 

21 

3 


Mks & Sp. (c) 

110 

26 

14 

30 



33 

_ 

136p 

Mks ft Sp. (cj 

120 

16 

6 

20 

26 

26 

— 


Mks.&Sp.(c/i 

130 

6 

42 

12 

34 

I6ia 

— 


MKs & Sp. (cl 

140 

3 «; -■ 

5 

23 

9 

— 

M 

Shell (cl 

360 

20 

2 

36 . 



42 

— 

378p 

Shell (ci 

390 

2 

— - 

18 

24 

22 

— 


Shell (cl 

420 

<S 


7 

— 

14 

1 


Shell (p) 

360 

1 

— 

14 

10 

20 

— 


Shell (p) 

390 

14 

42 

26 

2 

32 



Shell (p) 

■420 I . 44 
Februar) 

ia 

60 

N 

1 

ay 

52 

Au 

2 

trust 

» 


420 

46 

10 


• — 

68 

1 3 

455 p 


460 

. 15 

6 

25 

28 

45 

271= 




SO 

254 

10 


— 

f — 

75p 

Imperial Ic) 

60 

151| 

60 

161-5 

100 


— 


Imperial icl 

70 

7lj. 92 

9 

68 

' 4 

a 


imperial (ci 

80 

2 

i 

31- 

— 

6 

— 


Imperial ip) 

70 

3 

1 10 

41- 

2 

I 6 

— 



80 

71 

- 

10 

4 


— 



420 

8 

1 4 

27 

— 

42 


‘SSBp 


500 

* 

1 — 

15 

10 

15 

13 


Lon r ho id 

80 

jia B 

6 

— 

i L 

— 

7flp 

Lonrho (p) 

70 

! 2 

1 — 

5 

1 

6 

>' 4 


Lonrtio ip) 

80 

I 5^1 - 

8 

— - 

11 


P&O (c) 

100 

41 

— 

47 

4 

— 

— 

138 p 

PftO (c) 

120 

21 

i 11 

29 

— 

33 

— 


P&O ic) 

130 

15 

7 

22 

20 

28 

■ 

1 » 

P&O (Cl 

140 

8 

1 8 

16 

27 

20 

8 



560 

30 

1 2 

45 

. 16 


— 

J3B3p 


390 

15 

21 

25 

55 

42 

10 



420 

5 

8 

16 

20 

30 

5 



460 

1 

1 - 

8 

1 

17 

— 



360 

5 


8 

25 

— 




390 

13 

| 63 

20 

20 

25 



Racial (pi 

420 

1 40 

5 

42 

16 

45 

1 

» 

460 

1 80 

1 4 

; 82 

2 

as 


RTZ (Cl 

390 

i 54 


i 60 

10 

20 


'427p 

RTZ tc> 

420 

25 

| 1 

1 37 

2 

i 55 

— 


RTZ (cl 

460 

10 


i 23 

I 60 

' 37 

1 15 


RTZ tc) 

600 

1 

— 

i 6 

H3 

' 

— 


RTZ ip) 

420 

20 

! i 

| 20 

| 52 

, 25 

1 — 


RTZ (p) 

460 

42 

; 2. 

' 47 

l 

' 55 

— 


Vaal Rfs. Id 

60 

3 

3 

41 

:j 11 

7 

' 

558 

Vaal Rfs. (c) 

70 


*; — 


3 

8 

10 

H 

Vaal Rfs. (p / 
C 

50 

-Call 

B 


! 7 

i 10 SJ4 - 

P^Put 

rr 


relatively weak capital ratios and 
is likely to be used to boost UK 
earnings which will help reduce 
the unusually high tax charge. 

In addition the move when 
seen in conjunction with the 
recent appointment of a group 
chief executive (following a year 
when the bank Was rnn by an 
eight-man executive committee) 
is evidence that Grindlays Bank 
has found some serfee of direction 
after years of strategic drift 

For the Hong Leong Group 
there is a great ironic success in 
its purchase of the Dao Heng 
Bank from Grindlays, assuming 
that the shareholders and the 
authorities approve the sale; it 
will have succeeded in gaining 
a banking licence abroad after 
years of trying unsuccessfully 
for one in its home base of 
Singapore. 

Grindlays has placed its faith 
in Hong Leong over rival suitors 
reported for Dao Heng from 
Thailand, Taiwan and Malaysia. 
When the Monetary. Authority 
of Singapore turned down Hong 
Leong In the late 1970s. it was 
reputedly because Hong Leong 
lacked banking know-how. 

In a sense, the Singapore 
authorities have only shown 
their great conservatism. Hong 
Leong Finance, the quoted arm 


of the group embracing its 
financial interests, has won the 
confidence of both the financial 
and the investing public. . 

The finance house has assets 
of S8250m (USS124ra) and a 
market capitalisation df 
S§671.5m at the end of 1981. 

Hong Leong Finance ranked 
22nd of all Malaysian and Singa- 
pore companies by . market 
capitalisation. If it were a bank, 
Hong Leong would be Singa- 
pore’s fifth largest commercial 
bank after the Development 
Bank of Singapore, -Overseas- 
Chinese Banking Corporation, 
United Overseas Bank and Over- 
seas Union Bank, but then the 
Singapore authorities have tradi- 
tionally been conservative: no 
local - institution ' has been 
awarded a full banking licence 
since the 1950s. 

The finance house is only part- 
of a much larger group which 
includes property and hotels, 
plantations, a cement plant, 
printing, housing and trading. 

The group has assets probably 
in excess of S$lbn on both- sides 
of the causeway between Singa- 
pore and Malaysia. It is con- 
trolled by the Kwek family, led 
by Mr Kwek Hong Png who 
established the Hong Leong com- 
pany privately more than .40 


years ago. 

Hong Leong Finance began, 
business in 1966 with Kwek Leng 
Beng, one of the sons, as its 
managing director. The young 
Mr Kwek is still only in his mid- 
30s. The finance company’s first 
business centred around property 
mortgages and hire purchase of 
hi o tor vehicles, bat quickly ex- 
panded and offered a broad range 
of financial services, including 
leasing and industrial equipment 

.financing. 

In 1980, Hong. Leong acquired 
a controlling interest in Manson 
Finance Trust, a UK-based group 
specialising in secured mortgage 
financing and factorylng. 

■_ Mr Kwek Leng Beng has, for 
some time, been anxious both to 
complement Hong Leong’s 
financial services by means of a 
full banking licence and to look 
abroad to a more international 
/Stage. 

' The purchase of Dao Heng may 
help to ' achieve both those 
objectives. The group is also 
' hoping for a full bank licence 
in its own territory of Singa- 
pore when the new Trade and 
Industry Minister, Dr Tony Tan, 
himself a banker, completes his 
review of Singapore competitive- 
ness as an international financial 
centre. 


RTZ: no further increase 


Rio Tinto-ZLnc has confirmed 
that the present terras of its offer 
for Thos. W. Ward are final and 
no- further increase will be made 
prior to the 225p per share bid's 
closing date on January 26. 

Announcing this yesterday, 
RTZ also took the opportunity 
to add again to the series of 
letters and Press notices directed 
at Ward's shareholders by the 
two 'contestants or the take-over, 
battle launched by RTZ on' 
November 20 last year. 

• Sir Anthony Tuke. RTZ’s chair- 
man. recapitulates in the letter 
. the main points of his company's 
case and stresses again the con- 
clusion, hotly disputed by Ward,- 
that the demise of RTZ's bid 
would depress Ward’s shares 


leaving them “weak for a long 
period — particularly if RTZ were 
to dispose of its shareholding.” 

The letter is. also concerned to 
warn Ward shareholders not to 
risk having their acceptances 
withheld by postal delays due to 
bad weather or rail strikes. 
Morgan Grenfell, adviser to the 
bid, has made unusual arrange- 
ments whereby acceptances can 
be lodged by hand with certain 
branches of the Midland Bank 
in England and Wales. 

Mr Peter Frost, Ward's chair- 
man, said he was surprised that 
the RTZ bid terms had now 
become final. His Board had 
expected RTZ to pursue the 
option of a higher price reached 
in co-operation with some of 


Ward's larger shareholders. 

Such an increase might have 
been allowed by the Take-Over 
Panel, bad it led 'to one trans- 
action giving RTZ control of 
Ward. 

Mr Frost repeated bis view 
that the institutional holders in 
Ward thought the 225p per share 
on offer much too tow. He would 
not speculate on the increment 
they would need to support the 
bid ** but it is not a small one." 

Meanwhile, RTZ has continued 
to accumulate Ward shares in 
the market. Its stake was up to 
36.2 per cent yesterday morning 
and brokers de Zoete and Bevan 
are understood to have been 
buying steadily through the day. 


Fisons in Canadian deal 


Fisons. the chemicals group, 
has acquired for CS8.5m the out- 
standing shares in Its 50 per 
cent-owned Canadian interest, 
Fisons Western Corporation. 

The vendor Is Mascan Corpora- 
tion, which represents the busi- 
ness interests of Mr S. B. 
McLaughlin. It was called S. B. 
McLaughlin Associates when it 
sold Fisons its initial half stake 
in the Canadian company in 
December 19SQ. 

The first purchase was made 
for CS12ffm and the aggregate 
consideration has been based 
upon the net asset value of the 
acquired business, which pro- 
duces peat for -the -North Ameri- 
can horticultural market. 

Mr David' Peters, _ director of 
planning and administration at 
Fisons, said the company bad 
been happy to accept a limited 
stake at first, giving it a useful 
local partner and meeting what 
seemed to be the preference of 
fea Canadian Foreign Invest- 
ment Review Agency. 

Towards the end of last year, 
however, Mr McLaughlin 
indicated his desire to sell his 
remaining holding. The business, 
said Mr Peters, had performed 
“ well up to expectations " and 
contributed substantially Lo the 
£l'.lm first-half profits of Fisorjs’ 
horticultural division, to which it 
belongs. . 

Fisons has accordingly taken 
the opportunity lo buy the whole 


of the business but will now Plans for the new subsidiary 
discuss its total purchase with include the inauguration of two 


the FIRA and could yet face a 
request for partial disinvestment 
from the Canadian Government. 

The cost of the latest move has 
been partly financed by addi- 
tional Canadian, dollar borrow- 
ings for Fisons and also draws 
on its existing', cashflow in the 
country. Fisons has a Canadian 
pharmaceuticals subsidiary. ' 


new plants later this year for 
the manufacture of peat-based 
horticultural fertilisers. They 
are under construction in 
Manitoba and British Columbia 
and will aim, like the existing 
business, to serve the North 
American market 
• Fisons’ shares closed up-5p at 

160p. 


Less than 10 bidders in 
the running for Bowmaker 



in December 



BY KENNETH MARSTON, MINING EDITOR 


■THE - BEST December quarterly 
report so far announced by the 
South . African go$d: mining 
industry comes from Randfontein 
Estates in -the Johannesburg 
Consolidated group. Woricing 
profits for the period have risen 
to R57-3m f£3L7m) from R47.3m 
in the September quarter and, 
thanks to a sharply' reduced fez 
Aarge; profits at the met level 
are 59 per cent up at R50.9m- 

Pretty well everything was 
going in fee mine’s favour. during 
the past quarter. The average 
gold price received .was higher 
both in terms- of dollars ($441 
per oz) and rands (Ei 3,566 per 
kg), gold production increased, 
uranium profits rose and there 
was a further fall in working 
costs. 

Underground. development 
values both hr the Cooke section 
aqd. in fee old workings were 
satisfactory Whale 1981 Cooke 
ore reserves increased to 6.19m- 
tonnes from 5.37m tonnes in 
1980 

The grid value of the latest 
ore reserves was modestly raised 
to 10.3 grammes from. 9.6 
grammes. The uranium content 
was little changed but should 
rise as further development 
work is carried out at the new 
high grade Cooke No, 3 shaft 
area. . 


Thus Randfontein has 
recovered .from the setback of 
the over-op timK^ac valuation iff 
ore reserves in tire old part of 
the mine- which caused a stir in,, 
the' wha remarket in Novetoibeiy 

1979. 

The pane’s total net profit .for 
1981 comes out at R147.9jn, an 
improvement on tire R145.5m 
earned/ in 1980 ,- when..*, iagfe; 
average gold -price was received . 
of R15.530 or $62L 

As already anhounctd;- 
however, the 1981 dividend total 
was reduced to 750. cents from 
1,100 cents in 198a This reflected .. 
the increased capital expenditure , 
- which amounted to RlOto Mat . 
year compared with - R78.6m in 

1980. . 

. The ■ marginal "Western Areas-- 
has made a lower profit In the 
December quarter desgxfcte having 
-. received- -a higher -go*cL prices 
Gold output bras fallen fn tine, 
with a reduction' in 4he' gold 
grade to . only 3.9 grammes;' 
reflecting the need . tem porari ly : 
to draw! upon: low grade, surface 
dump material, and - costs have- 
risen. 

Latest ' grid - devriopment 
values ore hardly Inspiring’ as 
are the latest ore reserves wrarih 
include a' reiattvdy, small tofc* 


.nage from flae ' MWdfe Ehsborg 
reefs where sloping opBiw&otB 
are building up; these ree&iswe 
a kW’BuW are- to ‘be 

mined i pa'fa^y for feeirtaanffim 
content- . • A 

f western- Areas. Wjat.*w-- 

reserve total of- 10.4fcn tosme^vd; 

: ati. average : goht ffwte; qff -05. 
gnomes is based jqn w passable 
at a gbM price of . Ripoor.pr 
-$425. . 

'- It &d notable bowr-tbe rwwres 
of this marginal - : mine .-'bra 
affected by changes Sn-fee-goW •' 
price. At a price <rfS36M|ey • 
would ’ amount <to - only: 
tonnes ' with a : grade- of £ 5-9. 
grammes -whereas- theft 'rise. . ftr 
lL71m ' townes / griding * 
grammes atjtprice.M $48ari 
Ail fee csrirremt ptic^of. mstaat • 

, $STT -Vestern Arete win be fad- 
ing tbe -going diffictfltdJuf intise- 
■ longer ~ term matter. : wH - be , 
helped by uramim- pnjckjcfioa 
! which . is to begin; tins noA; ' 
contractual deliveries '«F 
material are due.-.iti the- first’ 
^quarter of next;y«ay < 
r' QiMirteriy net prcifite «f 
two -mines r *fe : .Aowb : te : 4he : , 

-foliowing table. 

• 

+ - ; da ijb" ■ w - 

moo ‘ .fiboo woo- 

-ttarxBommn '^/50.8S7 3t.«7 36,338 ), 
Warn Am* — 1X037 «007- 




it : J 

= 

. 

?■ ■*' ■ ■ 
i 

r*' r -.* 




*&-r. ; 


■JA 


R.r,- 

i n'p ,, 


' - 



Murchison 
Prieska goes into the 




- K. " 


'A*-' 

’rV- V 


THE STAR quarterly report from 
the mines in the Anglo vaal group 
comes from the antimony-produc- 
ing Consolidated Murchison. 
Profits have again improved in 
line with increased sales of 
antimony which continue to 
exceed production, thus reducing 
the stockpile built up prior to the 
recovery In the market for the 
material. 

Sales of by-product gold- bave 
afiso earned more in the 
December quarter with the result 
that Murchison has once again, 
staged a recovery from rags to 
something approaching' riches. 
The total net profit for l981 thus 
amounts to R4.61m. 1 

Last year, When the volatile 
market for :antimony collapsed 
Murchison suffered losses in the 
second half which left the total 
profit for 1980 at R1.48m. ■■ The 
dividend was limited to an 


Interim, .only of .30. - cents per 
share. The company passed its 
interim for 1981, but sob-_ 
sequ entity returned to. the. list 
with a final dividend for me year' 
of 69 cents. i i 
. In sfa^; contrast to the revived 
fortunes of the -antimony .pro-, 
dueer, the group’s Praeska 
copper-zinc jtaine has gone .back 
Into the red during fee December 
quarter. ‘‘A loss, of 5440,000 
leaves a haflf year profit of 
-Rl.STm compared with R5f»lm in 
fee same period of 1980: 

Prieska has, of course, suffered 
from fee falling price of copper. 
Shipments of copper qonqentrates 
also.feH, during the pest quarter 
sdfeough. those of zinc . concen- 
trates were slightly higber. 

Of Anglovaal’s H gold • mines, 
Hartebeestfahteln nas obtained 
a better gold price ih fee quarter. 
but. its output has 'fatien as a 


T 




result of a decli ne in grade. HoWp - 
ever, . costs . have, eased 'and there- '. c • 
has been- a rise in '4he.‘ 
prbfit-on gxdd. . Urinrfmn'incquie 
arfostdt-of fee 
’ tinting of- sales and fee mine' has 
come out wife ' a~ small increase 
. in ovwraid net profits, v' ’ v 
•’ The marginal -^lioralaa: has 
'managed to increase its WK&ng:'r- - 
jproflt on. ■ gold and .despite a .,v = 
•reduction in state .aid has- ended V- " 
up wife - a sJig&tiy hlgber profit' ri: '• 
. • for fee quarter. ‘ • ' . '/ ■ . .. . 

The T^loyaal profits ate com-- 
■ • pared in fee foflcwing table. ‘ ‘ 

‘ ■ - '-.'Dae Sspt.-.Jun^ 

• '-- r ■■■' ' • :f v ijir. 1 vf- ofc . “ 
: --j-.--* - m»a -how* ROW'-.f- 

Hartobcutfontrin 28.067 23.fie0r 28.-Mt , - 1 

Lorains . ; . *2^28 *2.454 •3,«L 1' V— 

Cnsdi Murchison ‘ 1 A33. 1.118 .. KK 
PriMka WO _. 1.711 'll 

Em YrnB*v«*l-J.' v 2.255 1.W7 - 2.«3 -.'I 

.VW*9*'MtolT.:^... . 22S - »8 «5 ! .} 

, ,t Lose. - ^.Alwr. rsetopt of Statu 
nsnurico.'- • 


>r- 


vr? 
iw. " 


INI 


Approval for 
W. Australian 


Canada’s Teck well 


- "X- 


The BritishLinen Bank Limited 

Issue of 

participation units of £2,500 each in 

CREATIVE (XPITM, FUND 


The British linen Bank Limited 
announces the launch of Creative 
Capital Fund. This Fundhas been 
established bo enable individuals to 
subscribe for new equity capital in 
United Kingdom companies which 
have been trading for less than five 
years or in start-up situations in such 
away that they may obtain tax relief 
for the cost of their investment 
under the Government’s Business 
Start-up Scheme introduced in the 
finance Act ISgL Investors will be ' 
able to apply for a maximum of four 
participation units of £2,500. 


By investing through the Bind, 
individuals will be able to obtain a 
spread of investments and will have 
thebenefit of the advice of The 
British linenBank which has had 
co nsid erable experience o£ 
investment in small er companies. 

Fhrthermore the Board of the 
management company. Creative 
Capital Nominees timited, consists 


of individuals who collectively will 
bring additional experience to bear 
. oh investment opportunities. 


Although substantial tax relief can 
be obtained by investment through 
such a fund, particularly by the 
higher rate tax payer, there are 
special risks involved in investing in' 
recently formed companies. Before 
deciding to proceed with an 
application for participation units 
individuals are srrougly advised to 
take financial advice, taking account 
of the special risks involved, their 
own financial circumstances and tax 
position- It is „ in any event, a 
condition of application that 
applications are submitted through a 
bank manager, stockbroker, 
solicitor or chartered accountant 
Full details of the Fund are 
contained in a Memorandum which 
can be obtained from the 
underacted address or from any 
branch of Bank of Scotland. 


To: Creative Capital Nominees Limited, 

c/o Tfte British Linen Bank Limited. 4-Melville Street , Edinburgh, EH3 7NZ. 

Name — — : — : 


_ i 


Address. 





THE NEW owners of Bowmaker, 
Britain's last large independent 
finance house, are expected to 
be announced within the next 
few days. 

S. G. Warburg, the merchant 
bank advising Marsh and 
McLennan, the U.S. insurance 
brokers selling Bowmaker, is 
expected to release details of an 
agreement in principle for the 
sale of Bowmaker in a deal 
which could be worth as much 
as FlOOral 

Considerable speculation 
surrounds the new owners of 
Bowmaker. Several leading 
U.S. and European 6nancial 
institutions in addition to Ul\ 
firms are known to have been 
in the running but Lite final short 
list has been reduced to less 
than 10 bidders. 

Bowmaker, which has over 100 


offices in the UK and Eire, had 
net worth of £54.9m at June 30 
1981 and deferred tax of £48.1m. 
The group's pre-tax profits 
peaked at £12.5m in 1978 and jg 
1980 it made profits of £4- 9m. 

Bidders are attracted to the 
group because 1 of Us national 
network and sound management 
record. It is thought that Ihe 
new owners could at least double 
and possibly treble the volume 
of business going through the 
operation without too much 
difficulty. 

It is understood that Bnw- 
maker's loss-making engineering 
operation. Bowmaker fPiani) 
has been stripped out of the 
unit which will be sold as a pure 
finance house. Marsh and 
McLennan acquired Bowmaker 
following the takeover of C- T. 
Bowring. 


STURLA HOLDINGS/ 
LAGANVALE ESTATE 


PRESTIGE’S WIGGIN 
SIDE SOLD TO ONEIDA 


The directors of Slurla 
Holdings and Langanvale Estate 
are to prepare profit forecasts 
for both companies to provide 
shareholders with furl her 
information about the combined 
group's prospects. 

Laganvale, the quoted Belfast 
properly company m which Mr 
Jim Slater has 26.46 per cent 
holding, is being acquired by 
Sturla, ihe financial services 
group, in a recommended share 
deal which values Laganvale at 
£4. 5m. 

Mr Slater had irrevocably 
accepted the offer in respect of 
his bolding. Together with Mr 
Simon Fraser wirh 12.47 per 
cent and the holdings of 
Laganvale this gave Slurla 46 
per cent of the shares and 
acceptances .since received are 
believed to have taken ihis to 
over 50 per cent. The irrevocable : 
acceptances, which lapsed on 
January 13. are now being 
renewed until March 15 subject 
to profit forecasts now being 
prepared by both companies. 

It is hoped that the offer 
document will be available for 

posting no laier than the first 
week in February. The reason 
for this delay has been discussed 
with the City Panel. 


The Prestige Group, the house- 
ware goods manufacturer con- 
trolled by American Home 
Products of the U.S., has sold 
its Wa 1s aJJ -based Wiggin division 
to another U.S. company, 
Oneida. 


The division chiefly comprises 
Old Hall Tableware, the maker 
of stainless holloware products, 
but also includes Bridge Crystal 
Glass Company and 'Wiggin 
Chains. The purchase price has 
not been disclosed but is under- 
stood to have exceeded £500,000. 

Old Hail will now be managed 
from Oneida's London office, 
which also controls Oneida's 
other main UK in l erest s, - based 
at Bangor, Northern Ireland. 


MANCHESTER 
lSE BUILDINGS 

Directors of the Manchester 
Stock Exchange Buildings state, 
that the 375p per share offer by 
London and Manchester Securi- 
ties is not related to the approach 
mentioned in the board’s letter 
of January 13, 1982. They will be 
writing to holders in due course. 

Directors and advisers — County 
Bank — recommend holders take 
no action in fee meantime in 
respect of their holdings. 


uranium mine 

AUSTRALIAN . Government 
approval has been given for the 
development of a small uranium 
mine in Western Australia. It is 
the Lake Way property, near 
Wiluna, and represents a joint 
venture between CSR’s Delhi 
International Oil with 53.5 per 
cent and Vam wife 46.5 per cent 
Economic viability and 
marketing studies will be 
carried out to determine how 
and -when to extract an estimated 
3.700 tonnes of uranium oxide 
which is thought to grade 
around a modest L5 bi uranium 
oxide per tonne. 



tin £■ 


SOCIETE GENERALE 
HAS 8*5% OF TANKS 
Societe Generate de Belgique has 
received • acceptances which 
would give it 89.5 per cent of fee 
capital of Tanks Consolidated 
Investments god hopes to reach 
over 30 per cent by the end of 
this month. ’ 

Once it has topped 90 per cent, 
Societe Generate can declare the 
offer unconditional. The com- 
pany, which held 30 per cent of 
Tanks ordinary shares directly or 
indirectly, is offering 450j» per 
Phare for the balance. 

The takeover, launched last 
September, was the first stage in 
a plan to reorganise Societe 
Gencrate's holdings <n fee non- 
ferrous metals seot or. 

It was followed by the absorp- 
tion and reconstitution of 
Belgian company Union Minlere 
SA to head its newly vertically 
structured holdings in this sector, 
including Vielle Montagne SA 
Metatlurgle Hoboken Overpelt 
SA and Cie Royal e Asturienne 
des Mines SA. 


CANADA'S Teck Corporation is 
■in a good position for continued 
growth, according to Dr Norman 
B. Keevil, the chairinaax. * - r 
He told shareholders in' his. 
annual statement that ea r nings 
■will improve as metal prices 
recover to more -realistic levels, 
and last year’s work bn develop- 
ing new mines will "broaden the ' 
company’s range of commodities 
and strengthen profits. 

Dr Keevil went on to say that 
he believes there is cause for 
confidence that metal prices will 
begin to recover in the near 
future, and pointed ont feat in 
real terras, ; the copper price is 
currently at - its lowest since 
1946. • 

He expects fee increase in the 


r.'-i 


.price of copper to-be ^Substan- 
tia] - and sustained,” because 
reported stocks of the metal are 
at a low. level, unite :lbe last tow 
point in the price, eycte 
■ Tech's performance is heavily 
- dependent op the copper price. 

This - is illustrated by fee fact 
that an increase of 15 U.S. cents' 4 - '' 
per pound would boost the com- 
pany’s cash --flow* by around- 
C$14m <£&2m : ).' ''. 

Net earnings in the year-ended 
September 30 . . were C$lL9m Z .z 
before extraordinary items, hut 
after fee inclusion of gains .on 
.the. sale":' of investments this 
figure .rose, to C$525m. * v 

.Teck has been carrying out a 
programme * designed to reduce 
its debt, which fell by CSI43JU 
during fee year. 


r-4 . . 




.•y -. 





■<*. i- 


C f, 


A SMALL rise-in net profits has 
enabled Free. State Development- 


and Investment t “Freddies") to 
maintain its interim dividend for 
the six months to end-Dec ember 
1981 at 15 cents (8J2p) a share. 

The company, a Smith African 
raining finance house of modest 
size within the Johannesburg 
Consolidated Investment, group, 
returned net profits of RU4m 
(£626.000), slightly ahead of the 
Rl.OSni for the first half of fee 
previous year. 

- Freddies paid a final dividend 


CONSULT INT7NEW 
DAY ' FURBISHING 

Mr Ronald Shuck has acquired 
New Day Furnishing Stores and 
its hire purchase company:. North 
Wales Trust. 

The acquisition was bandied 
through Consult In tern atonal, a 
Birmingham-based company 
wholly-owned by Mr Shuck. 

New Day Furnishings has its 
head _ office in Stockport, 
Cheshire, • and sells furniture 
through its 70 retail outlets in tfc e 
UK. It operates its own hire 
purchase finance company. North 
Wales Trust. 


AMERICAN VALUES NX. 

(Incorporated under the laws of fee Nethertond Antilles). 


The Directors have declared a dividend of U. S. 93.00 per 
preferred share, the record date of which, is November. 
30th 1982, payable January 15th 1982- 

Eolders of bearer shares should present coupon number 
2 at The Bermuda Provident Bank, Barclay's Inter- 
national Building, P.O. Box 1748, Hamilton 5, Bermuda. 

“Registered Shareholders of record wiUhayethefrdMd,cnd 
cheque mailed to their address. 


C.T. CoUis 

Seen tare 




si 1 


R. P. ELLEN TRANSFER 

Church & Co-, fee Northampton- 
based shoe -manufacturer and- 
retailer, is to transfer fee man- 
agement of Its R. P, Ellen sub- 
sidiary to A. Jones and Sons, its 
100 per cent owned Eastbourne- 
based jnain-' retailing operation. 

Ellen, acquired by Church in 
1978, has 15 shops in the London 
area and has retained head- 
quarters in Leyjon* This will now 
close, with about 20 staff redun- 
dancies. Mr N. F. Prentice, 
Ellen’s managing director, will 
join A Jones In their Eastbourne 
head office as a board director. 

The change* will he accom- 
panied- by a capital reorganisa- 
tion within fee Church group. 
The parent company will sell fee 
equity of EUen to A. Jones for 
a total consideration of n.2m 
Ellen has a net book value at 
£1.65nr-at the end of 1980 and' 
tnade pre-tax profits Of £123,416 
during 1880. •" 


last year of 32.5 cents, to give a 
total of- 47.5 cents : from net 
profits of B3.63m. . - 

The . directors give fee 
customary warning that no «a- 
rlusians should be drawn from 
these results as to fee likely 
outcome for the full year, -as 
investment income does sot 
accrue evenly throughout fee 
year. , ... 

Net asset value - per share at 
January 14 is shown as 671' cents' 
(369p), against a share -price in 
Lbndon yesterday of 235 p.V, 


jsie-:' 






*5; 


s, r * 





Investment 

Interim Report for fee 6 months ended 3Xst Ortober lSM 


O’-’c 

■:T K 

i 


•Vs 

l; : . 


ja 

3?- 


rl .. 

■.Wv; 

, 'v, 
-'S? "■'■ 
'ti. . 


m i 


_ 6 months . 
to 31st 

"Oct. 1981 

(UoautHtad) ’ YUncucUtodJ v . 


6 mouths - ; Year to . 
■tosiw -^Anra-'M 
Oct 1989 ~ - -TOHT rJ 


•--V- 

i :i 

■!> * *D 

V - ' v- 

4^^ 


Rents Receivable 


Net Property Income 
Interest Receivable - 


Ground Bents Payable 
Interest Charge* 


Income before Taxation 

Taxation ."j 


1251 


Income afterT^xattoii" 

• - . ? • . • . i. 


Group Surplus avaflaafes ■ 
for Distribution ’ 


Dividends 









hfc: i.. 


i v !) « ' 
fy.y'y * 

m* i 


JL7SP ) 

NOTES: • '-- "W ^ "" 

<l> Tmer^st .f<rr ; The-.6 feodite , 

ahletoproperties 

* £134.000 <1980 — £88^W^ --e*ci^^o5 . 
fee above- figure*- and. 

. - course of deveteptaML v >. V; v‘: 

(2) The interim • dirid^rf.'n^^lSa , ^i \ 
ended 30th Apri5^19S2?wift J>e i>i6^ bh jgnd A tafl. YOafe." 
to thmm Bfe - " ' " '* 


;l»th January, 1982 .: •; v ■; , t V K : • 

■ - • • • • • ' ' r~. r.-va- -i*. r. r i ' 



*51 



ii!> 

ft $ 


mu 


S3 

•3 

33 

% 



I 




, - . .. .. — — 20 1982 

N :INTERPfAtTC>NAL COMPANIES and FINANCE 



27 




m 


likely to 




in 





. jftttgr groggy ij& o ort f b mig d that 
^TFls’lttc.ely'to eat- fteltaicttqg! fa. 
^w^-Honeyweffl. , ®uB, -. its $7 per 

v qes^wB&A -yrexxii -pf&fatfe,: to 
*fOT r ®er : ceot or Trie con- 

^j^zmatitHr came -as*' HoneyweJi 

- jl 21 ^er. ceot : die© 
fa final quarter :re*uilxj. mainly 

1 »3*eeause-. of ciboh^ at 

•yiiCSLv'i / . •,'! • • .. 7 --'; : v/V V. 

• • bice Operating / earnings : .fa r its 
. ^4nal quarter were' down from 
r^^S0i2a^'pr $5.'79-ir sb-are^ to 
V $4.46 aeriaie, tor 

’.“-fit - ans mai fa tal ,- oS -$258.am 
^agafast l$276.3fa. ■ AnnaxaJ per 
fc ^IarB-jpr^ta'ei!?ce^ -$lX2iS:'coB>- 
-:' wife $12-36-' and ' Mr 
!? ^sob, Spencer, ' ^Honeywell's 
jChaMBnan, said di redOtcedoam- 
-.jagsriy 61c«tfe a^iare ior toe 
:iryeax; 'fa 1980 it added $L4ih a 
•»r.«bare to profits. ■•■ ' \- ' : . . 

>»*' -The per share figure facfcxtes 
a foreign exchange gain ’ of 
-,--$3.60, 'against onfe.TS cents ' 
0 „’ Revenues for :198i - totalled 
$5.35bn compared ’Witil $£92bn, 
c - wsfa fae final t Quarter adding 
;; 5J.57feL against $L^Hiw ' " .’ ’ 
Jr Mr Speocer’sr: statement on ft* 
^plans. foa: ’aS're^presefax/the 

- first concrete sign J ttiat Honey- 
. weH, after ^'ntfis of . negotia- 
tions, is to reduce its .stajce fa 
Cti,'wh3ch with the'qSwmson 
electronics gr ou p- is' earmarked 
as 'one .{ft thie .xfares for the 
French afa3prter>iDdnstry. ' 

- Mr Spenc^ . ^gaveTfa details 1 

- of tocryf the reduction would be 
achieved, tout in the recent talks 

^th£. Iprp^Jtct.- ;._af - Honeywell 
^jrecefyfag .; cwnpensatioBL . ...of 
^between $230m and $270m ior 
. . a^'ts stake has beem ra&sedras has 
D^the idea of the French Govern- 
~ra*ment : reducing " v . Honeywell's 
« ?f holing though exclusive rights 
issues.: 1 - - ..; ■;■.■•". 

,.6i/ Tte-Freiich Government has 
»=UM-v along been keen to main- 
>■ . twin the -technological links 
b»’beti*$oi ; Honeywell and ' the 
-computer industry, 
-altfew^. with the prospectof 
^^nftMuing 'losses at CSf. Hohey- 
, 'W^.jWou Id be pleased “iKM ' to 

^bave^fa include theCSi results 
' tri« an' ? equity accoturttug ba^s. 

a*,.* v ••• --'* •’ 


IIP hits 
arnings 


U5., 


of 
icing 1 


TX& HOME, the. largest bail tier 
JOt vprivate homes fa the U.S., 

- js bearing the brant of the 
.slninp, fa the 

tnarheL Last 1 
: were ‘ down to 
tpacrtev of those adMerefl 
1680. - 
- But the drop was not 
-ted for- so modi by lower 
fa by the comp army’s 
offering below 'warioet 
to stimulate sales. The 
of mortgage subsidy has 
widespread because -of 
rates— 17 per cent 

- d e man d ed by banks 
institutions. - 
• -..Net earnings for 
were $10nj, down 
fa 1980. Reverme 
down- front-.. $1 Jim 

■ ■ New- Homes 
.year .were down 10 
and new orders fell 
6 per. cenL 


J.S. 


wasJ 


Ber 


showed a 


In the final quarter, but 
Home said this was the 

t of mortgage subsidy 
oper ations rather than an ig>- 
torn fa the market. 

U5. - Home, wbxcb earns 
voatuafily all its profits from the 
sale of single famgy hcanes.lias 
three-quarters of its' operations 
fa Hie faster gro wi ng southern 
and south-western states, fa 
October last year, the group 
announced that it was reducing 
the numbs: of its housing com- 
higfa , musities by 11 per cent and had 
laid off 20 pear cent of its 
workers over the previous six 
months. . 

However, the long-term- out- 
look as strengthened by expecta- 
tions of further increases in 
demand tor housing in the U.S. 
Soaete des Maisons PHENIX, 
the largest housebuilder in 
France, has a 17.S per cent 
stake fa U.S. Home. 


yea: 
$44Jm 
lAm 


General Foods optimistic 
despite nine-month setback 


■- ■ BY :OUft FINANCIAL STAFF 

EARNINGS at General Fod^s 
are sharply lower at tee tine- 
iponfastege. However, tie. com- 
pany, which dominates, the pro- 
cessed coffee market -in the 
TLS; wfiUh its MaxweS House 
brand' and has a majer rate in 
packaged foods, is confdentf that 
“despite problems ' in the 
economy,” if Can renter some 
grans & earnings fa fecal 1982. 

Operating net tor the. nine 
months was 13 per e*nt down at 
$15».7m_. or; $3^2 a share,, 
although sales wee up from' 

$L92bn to $6Ftozi. : 'The fane- 
month total exdnres a 25 cent 
a share loss . on discontinued 
operations. 

■ Trading evidepfly improved 
somewhat, fa the titird quarter, -suffered from the volatility of 
since operating net showed an coffee prices. This side of the 
H 'per cent fall Compared with business represented 41 per cent 
around 15 per cent in the open- of group sales last year but only 
fag six monffisof the year. Hales 29 per cent of profits, compared 
remained sfirtng in the ttffrd with the packaged food division, 
quarter, trtaflSng $2.12bn which served up 62 per cent of 
against $1.58fa- profits from 46 per cent of sales. 


A ' substantial port of the 
increase in group sate has been 
ascribed to the irrsbnaon of 
Oscar Mayer, the leading meat 
processor, acquired fa May 298L 
General Foods said volume 
trends in the U.S. had responded 
encouragingly and were up from 
last, year, although economic 
problems had reduced some of 
the expected benefits expected 
in the packaged convenience 
food business. 

About one-third of group 
sales but less than one-fifth of i 
operating income, came in >1980 
from international operations, 
from which further progress is 
expected this year. 

Earnings have fa recent years 


ter-’- 

zi<r 
' ' 


INTERNATIONAL BON D SERVICE 


The list shows the 200 latest 
exists. For further detafls of* these 
will be published next on Tuesday 


bond issues for which an adequate secondary market ! 
c bonds see the complete list of Eurobond prices which | 

Closing prices on January 19 


U S. DOLLAfi. 
STRAIGHTS 
Anltsuwr-Bua 
APS Fin. 


ifltnwd Bd-Ohr 
88 100 falViaeV 



Armc o O/S Fttl.i 
flank' Mpnuval SI ' 
Co1un>< hyO.- 16>« 88 . 
n TTBt. Colurn. MJ». 17/ST 
' ■ '•'Cin. fat. Ro0 1AH FI 

- Catarpillar Riu^Wrk ■ 
.. . «nCFMP 10V 96 . 

CIBC 16*^1 

.. ."Citicorp 0/S/I6V, 6fcii. 
/'‘CiTte# Serviw rt^^. ; 
---Coiis. ■Bathurst. TFj-^8 


iUSCPG. Fin. 1GV 8| .v SO 
strPupont O/S l^j 88 ... 4to 

^4«b is 1 * -8& *00 

-T EI8 16\ 91 MO 

^E-GMAC 0/S Fin.:i6>s w toO 
■ Gull Stales O/S 17H 88 80 

jgAlat. Bk- Canada 16^.88 09 

.i...;.: 100 

Brunswick 17 88 
.■•"^towfoufitllBnd T7 5 , 89 60 

SZ New aiih Hy. TZV 88r .-TS 
wjQhkr Edison fin. t7^88 ' 

OKG 15V 97 

Ontario Kyd. 1S 91 (N> 

^ iRac. Gas & S. 15V 89 
ijdjiioboc Hydro. , 17V 31 . 

’ atS fioabac Province 1SV 89 
Saskatchewan - IB* . 88 
Shall Canada 1BV-91 ... 
gtais foretag 15V 87 -. / ” 
Sweden 14V BS .w..;../™ 


Swed. Ex. Cred. W, 
Tannnco Int. 17 89 
Tubs Eastern IS 7 , 
Transcairado' 17V. 88 
c <Tfenscan#da . 16 
^,,iVait Disney IMi 
wfinnipog 17 86 
WMC Fin. 75V 
i-Warid Sank 18 
' World Bank 1 
V^Wotid Barth 1 
' Avans* pri 

ri'cHEUTSCHE 
< n STRAIGHTS 
_„Aaian Oov. 10 81 
^ Aaian D«v: Bajt 10V 83 
-Ausxraiie £ .. 
Be(g*lectnc 1 81 
'T-CECA 10 91. 

"Coun. of Enpe 10 91 
1 Coon. oi : EiPP* 1<A 91 
EEC'TOV 
-JfB 8V. 

€® WV 


weak YMd 
O 1535 
'j*iOfl 46.-10 ; 

J-OVWfa 
rOV-OS 1630 

S -QV 16.04 
-0V 16-37 
+0. -IV 16.14 
I -OV 15.96 
+P* t-OV 16^40 
J0V-0V 16.51 
. f(P a +0V ISM . 
+0V -HP* IB-79 
+OV O .16.85 
+0V -OV 15.21 
8FV +0>* +0V 15.33 
IPIV 0 -0V1BJ6 
inv +0V -OV 18.52 
in +0V +DV 16J» 
or* + OV +0V 16^3 
JOOV 0 -OV 17.09 
95V -OV -1V15 73 
V104V -HP. +0V 1SB9. 
108V +OV-OV15JS - 
io3v +ov +ov^6as 

■JOZV 108V +0V -OV 16.66 
97V 97V +OV +0V16.17 
98V 9BV +0V.-0V 16.07 - 

totv ioiv -ov — ov isas 

108V 103V +0V -IV 16fa 
96V 96V -OV -IV 16-07 
100 100V 0 -fcOV 16.14 
99V 100V -HIV -OV 15.70 
96V 9fl -M +0V 16.13 
92V 92V +0V -OV 16^3 

unvraiv +ov -ov i«.ib 
■103V 10* +0V-+0V 16-06 
99V 99V +OV 0 15.98 
106V W6V +0V +OV 16.17 
99V 100V +0V +OV 16-00 
100V 101 +0V — 0V.15A3 
TOP* 10BV +OV -OV 16.13 
95V 87 +0V+0V16fa 
98V 99V +OV “OV 1603 
W1V 102V +0V -0V15S2 
100V 100V +0V -1. T6J1 
changes... On day +0V on weak — OV . 


I Finland, tfP- d 10V 86 
Intar-AOwfcBn lOST 
Inwr-An^ can 10V 31 

Japan * Lina* . 8V 87 
MrdlenffTit. Fm. 8V 90 

Mi BtfDnmk. K?t 91 
New $l£hd sv 89 ... 

0KB fa 81 ....... .. 

Hydra 10V 91 — 
WV 86 
Crad. lOV 91 . 
Bank 10 91 


■ fika ng a on 

Issued Bid Oflar day weak, Yield 
i ■ 99 89V +0V -OV 10X» 

‘ 101V 102V +0V +0V 10fa 
l 99 99V +0V +OV 9-49 

' ■tolVIOHi 0- -OV 10.72; 
101V 101V o — OV S.74 
100 100>, -OV +OV SSZ .. 

100V ioiv -ov +0V 10.11 

TOO 100V-— OV — OV 10J77. 
9JV WV +OV -OV 9X5, 
102 102V +0V -OV 1008 
' 99V 100V 0 —CP. 10.41' 

99V100V 0 

100 100V 0 — OV-10.18 . 

99 99V -OV -OV 1032 

95V 96V +0V -OV- 9.14 
. 33V 9SV+0V +0V .9.62 

99V 100V 0 -OV 10.51 
99V 100V ’ 0‘ -OV 9.72, 
10DV100V -OV -OV 10.06 . 

W 1 V 101 V -ov.-i 10.W 

100V 100V +0V O 1056 
. 96V 99V -0, +OV 10-38 
98V 100V “OV — OV 9.97 
price changes—. On day Oon.week -OV 


50FTE8V89EUA 40 

U. Bk. Nwy. SV 90 EUA 18 
Algamene Bk. 10V 88 FI 

V Amiss Graup 12>« 86 FI 

- Amro Sink 12 88 FI ... 

Amro Bank 12 86 FI 

-^Hainaken-NV 10 87 F|.„ 

Pierson 10V 88 FI 

Rabobank 12 86 H 

Air France 14V 86 FFr... 

Bk. America 14V 86 FFr 
Charb'nagaa 13V 86 FFr 

E(B I4V « FFr 300 

La Radouta 14V to FFr 125 

QKB 14 86 FFr 400 

So N ay et C. 14V 66 FFr -200 
Swed. E. Cr. 14V » PFr 
U. Max- Sts. 14 to PFr 

Acona 14 85 E 

BBnahcief 14i« 90 E 

' BNP 13V 81 £ 

CECA 13V '88 £ 

Citicorp O/S 13V to E 
Fin. Ex. Cnd. 13V 86 E 
Gen: Elec. Co. 12V 89 £ 
Hiram Welker 14V » C 
Privatbankan 14V to E 
J. Rothschild 14V 90 £ 

Roys) Trustee 14 86 £... 
Swsd. Ex. Cr. 13V 66 E 
Akzo BV 67 LuxFr ...... 500 

- Eunrrom SV 88 LuxFr ... 500 
Eurafima 10V 87 LoxFr 500 

EIB SV to LuxFr 600 

Volvo 9V 87 LuxFr ...... 500 


00 

40 

75 

60. 

100 ' 

60 

50 

200 

250 

400 


250 

160 

20 

20 

16 

20 

SO 

15 

90 

2 

12 

12 

12 - 

20 


'78 78V O +OV 12JJ6 • 

91V 82V +OV +OV 11-00 j 
87V » +OV -IV 10-9* I 

mzvwzT+ov o 11^8 
Id HWV o -ov 71 JB ■ 

101V WIV -FOV -OV 11.54 | 
96V 97 +0V O 10.78 | 
96 96V +0V +0V 10.78 j 

101V 102 +CV -OV 11-43 ' 
93V MV 0 +OV 16.64 - 
92V 93V O -OV 18.80 i 
. 93V 94V 0 +OV 16.17 
69V 90V O +0V T«X 4 < 
91V 92V -OV +0V 17.42 . 
92V 93V O +0V 16-47 I 
32V 93*, O +0V 17^4 . 
92V 93V O H> 77.15 \ 
91V 92V 0 -OV T7-38 | 

90V 91V +0V 0 17.44 • 

83V 84V 0 O 17.32 , 
84V 85V 0 +0V 16-92 

aev 89v +ov +ov 16^2 

88V 89V 0 +OV 16,12 l 
90V 91V o +OV 16.99 i 
85V 86V 0 0 15.88 j 

■ 9SV 94V +0V +0V 16to I 
88V 89V -OV -2V 1735 j 
92V 93V O O 15.82 ! 
. 92V 93V +0V 0 1634 
90V 91V 0 -OV 16-93 
84V 65V 0 +0V 12-98 | 

86V 86V 0 -OV13J6 ‘ 
91V 92V 0 +0V 12.47 I 

87V 88V 0 +0-V12.75 I 

86V 87V 0 0 13 .T1 


FLOATING RATE 
NOTES 


fWAMC , 

ights Iwnmd 

art Paris BV 91... - 60 
i . Dev. Bank 8 90 80 

9i 9i: wo 

Blectnc F|u. ,7V. 91 TOO. 
Bil Canada. 7V S3- — WO 
grgtm. Crly oI 6V 91 40 

i It. de Airtapietas 8 90 SO 

‘ fCA'6V 9>. 80 

I .^ma-rPeTroleum 5V -91 “100 
1 rams. PaxralauRi 7V 90 100 
\ rranc.^Petrolaa SV 91 ■■ 0° 

» a w star ? 91 100 

i ^nt. Aimer. Dv.-Bk. 7 91 1» 

» J/S E*sam 8V 91 “ 

[; Japaac Air Lines TV Bl 100 
i. NedB£.-Gaaunie:8 91— TOO 
. 0K8 7te : WO 

f OKB.7V si ■: WO 

f Oakv City of 8 91 — — WO 
SautrEtianiM SV Bt * *7 20 
.! Swed. Ex. Credit 7V 91 . "76 
'! TNT^O/S Fin,- B 31— 60 

! UoilevM fat- TV 88 — 10° 

. World Bank 8 SI «0 

1 World Bank 7 SO . WO 

• World Bank 8 91 WO. 






Avarape price- changes — 


-Cherqe on 

BW Offer day week YMd 
94V 94V -0V.-0V 7J5 
102 102V +0V 0 7.65 

96 95V “OV O 7.25. 

101V W2 ,+OV o 7.48 
105V 105V 0 0 6.55 

JKJOV WOV +0V -OV 6-67 
100V 100V -OV o 7.M 
499 B9V 0 “OV 6.87 
94 W.+OV 0 6.63 

104V 104V +ov -ov «■ M 
f96 ■ 86V 0 +0V 7.06 

WIV .W1V +0V -1 9.73 

98V 9BV +0V -OV 7.09 
106 W6V +0V +1 7.72 

104V 104V 0 O 6-63 
106V 106V 0 —JV, 7.09 • 
• .100 , WOV +0V 0 6.93 

- WIV 161V ’+0V o 7.07 
T05VW5V 0 +0V 7.17 
' 106 106V. +0V +V, 7.W 
,97V 97V “OV +0V. 7.0 
106 W6V 0 .0 7 J6 

105V 105V -OV -£• f’S 
193 S8V 0 -OV 7.0 
WO WOV —IV -IV 637 
105 W6V. 0 “OV 7J4 
On dayOon week -OV 


YENTmitoGHTB ' * 
Aaiap Detr: Bk. BV 31 
Australia -BV to -UL — ■ 

eib 7V J. 

Finleod. Bsp. -af.8V 87 
int.-Amer.~Dev.' BV-'fii 

Naur. -Zealand 8V-87 


Avenge wfap changes. 


v ■ - Change oa 

tasuad Bid Olter day week YWd 
IB 100 W 0 -IV 8.16 

•20 -91V 92^ +0V +®*« 

■ tt- toV toV 0 +9V 7to 

' 15 WOV 101V 0 “2* | S 

■ « W2V103V “OV 6-39 

-» TOOV WIV o +°V B - 1S 


On de* 0 on week -°V 
j , Change on 

OTHER STRAIGHTS Issued Bid «5*®& ""S TL« 
Can. Utilities 1738 CS 60* .197V 9ffl. -^8V 

Fadetol Oev.:i7V»es « -tVW « 

GMAC fCao.) 18 87 CS GS H«V •f'S 

PanfaaeW ,%9*M CS 66 «"• ^T2> "S* iStS 

Oeab, Urbao t«, to.CS^ .20 “fWO "W 0. _-0V 
floynM 17V * - 4C -tWOVWIV 0 -JVW-90 

Tor dam Cpn- 13V0S.CS. 30 «V ■»** I!. 

Drunk. 991 EUA 2fr 83V « 0 +1V 


Bank of Montreal 5V 90 OV 
Bank of Montreal F« 91 OV 
Bank of Tdkvo 5V 91 . . OV 
BE. Nova Scoria 5V 83 OV 

BBL Int. 5 88 OV 

BFC€ 5V 88 OV 

. Christiania. Bk. 5V 91... WV 
Co-Ban EufcAn 5V 91... OV 
Dan Norsks Cred. 5V 93 OV 

‘ Genfmance 5V 92 0*« 

Giro end Bank 5V 91 ... WV 

GZ8 5V 93 WV 

Tnd. Bank Japan SV 88 OV 
Lloyds EuroHn 5V 93 ... 50V 
LTCB Jv»en 5V 89 .. .. OV 
Midland Int. Fin. B 31 OV 
Nadonal Fin^ 6V 88 .. OV 
Nat. Bk Canada 5V 88 OV 
Nat- West. fin. 5V 91... 50V 
Nat. West. Fin. 5V 92- . 90V 
Nordic Int. Fin. 5V 91 .. OV 
Offahore Mining SV 91 OV 

-Pamex.8 81. - OV 

PfCbirriken 6 91 OV 

Sanwre Int: Fin. 5*« 88- OV 

Scotland Int. 5V 92 OV 

Sec. Pacific 5V 91 OV- 

Socleta Generate 5V 91 OV 
' Sparebankan 6 87 ... . OV 
■Standard Chart. 5V 9J OV 
Sumitomo Fin. 5V to. .. OV 
' Average pries changes . 


Spread Bid Offer C.dte C.cpn C.yld 


99V 99V 18/6 
99V 98V 29/4 
to . «V 10/6 
99V WO 29/4 
99 S9V20/5 

SSV WO 26/4 


14V 14J0 
17.06 17.13 i 
13V 13.49 - 

17.06 T7.T1 • 
13V 13.80 . 

16.94 16J8 • 


96V 98V S/2 1536 16.74 ; 
98V 99 14/4 16to TSSO .. 
97V 97V 4/5 13-66 13.89 • 
99V 99V 30/6 1SV .1538 , 
98V 9»V 23/3 -MJW 14.19 
98V 99V 5/3 T3V 1327 ; 
-98V 98V 9/6 13JJT 1350 
99V 100 29/4 17.13 T7.77 i 
99 99V W/7 15Jn 15.43 ; 
99V100V90/4 T7.06 iy.08 ; 
97V 98V 2S/3 T7J31 17.69 ( 
99V WOV 24/3 17-31 17.33 
98V 99V W/7 15.19 1&32 ! 
99V WO 23/4 . 17 17.04 ] 

98V 99V 6/5 16V 15-78 1 

«7V 98V 2/6 13 13.29 

97V S7V 8/4 17 1741 | 

98V 99V 17/8 WV ' 14.52 

19BV WO 24/3 17V T729 ; 

97V 9BV23/3 13.94 14.20 

96V 98V 34/5 13?. 13.43 . 

.99 99V 22ri WV 18-77 ' 

S&V 99V 21/6 14-44 14.60 I 

97V 98V18/5 13,31 T3J7 j 

99V 6/2 19^6 19.71 


On day 0 on week — OV 


1 


CONVERTIBLE Cmr. Cmr. 

BONDS date price 

Ajinomoto 5V 96 7/91 933 

Bow Valley Inv. 8 95. 4/BI 23.12 

Canon 6V 9 : . 1/81 829 

Itoiws Sece. 5V 96 12/81 5130 

Fujitsu Fenuc 4V 96 10/81 6770 

Furukawa Elec. SV 96 . 7/81 300 
• Hanson 0/5 Fin. SV 96 8/81 2-74 
- Hitachi Cred. Cpn. 5 96 7/81 1733 

- Indie ape 8 96 2/81 455 

Kawasaki 5V 96 9/81 229 

Man/i 8 SB 7/91 93 1 

Matsushita El. 7V 95 .. 11/80 S80 
Minolta Camera 5 96 ...W/B1 909 

Murata 5V 96 7/81 2190 

NKK 6V 96 7/81 188 

’ Nipoon Chemi-T. 5 91. ..10/81 919 

Ricoh BV 85 8/80 604 

Sanyo Electric 5 96 ... 10/81 652 

Sumitomo Mat. 5V 96 10/81 305 
.Swiss Bk. Cpo. BV 90.. 9/80 191 
Taylor Woodrow 8V til 1/81 434 

Tranaco Int. 8V to 8/BI . - BB 

Tncorp 8** 95 2/813125 

Union Bk. Switz. 5 89 . 2/8070.79 
KonisMraku 6 90 DM 2/82 SS 
Mitsubishi H. B 89 DM 2/92 263 


Chg- 

Bid Offer day 
to 93V +1V 1-48 ! 
SBVTOOV 0 30.58 1 

106 TOB +0V 3JM 
179V 81V +1 -1-to ’ 
W8 KHV +TV 4.71 , 
122V 12* 0 -1.20 

194 to +1 -3.06 - 
90 92 -IV 7-34 ! 

160 61V +0V 17 33 I 

82V 84V -OV 3-8S , 
70SV 108V +2V -0.60 : 
92V 94 O 0.47 i 
71 72V +OV 12-21 

78V 73V +OV 20.06 . 
98 99V +0V 2-07 

74 78 +0V 336 

108V 108V +OV 134- 
76V 78 -OV 7.11 ■ 
83V 84V +0** 1-57 . 

173 75 +BV 1222 : 

182 83V +3V —0.28 ' 

T76V 78 C 272S ■ 
165 66V +1 46.76 5 

1B2V 84V +OV «-» 
97 98 +OV 1.17 ‘ 

99V WOV “OV -097 


Digital 
Equipment 
lifts profit 
by 42% 

By Our Rnandal Staff 

DIGITAL EQUIPMENT, the 
leading TJ.S. mini computer 
mater, pushed trp net earn- 
ings by 43 per cent In its 
seeond quarter from $69^8m 
to $99-0Sm on sales ahead by 
27 per emit from $762JSm to 
$965ffm. 

The company remains con- 
cerned about the continued 
moderation fa the pace of 
growth fa its business and Is 
cautious about the levels for 
the coming few quarters. 

For its first quarter, Digital 
recorded profits growth of 58 
per cent and, with the slower 
rate of increase for fte latest 
period, half year net earnings 
were ahead by 49 per cent 
from 5126. 18m to SI 87.88m. 
Sales for the half year were 
27.5 per cent higher at $L81bn 
against $1.42bn. 

At the per share level half- 
year profits Mme out at $8-39 
compared with $2-60 after the 
second quarter contribution 
rose from $L43 to $1.79. The 
company, which also ranks as 
one of the leading U-S- makers 
of computers and peripheral 
equipment. Intends to con- 
tinue to emphasise cost con- 
trols and limits on hirteg fa 
the nest severai quarters. 

However it is to keep up 
its high level of research and 
engineering spending, with 
the total expected to reach 8 
per cent of sales, which are 
likely to be approaching 54bn 
for the year. 

It also intends outlaying 
S500m on eapital spending, up 
by a quarter from last year. 


U.S. QUARTERLIES 


* No Information available — previous day's price- 
’ 1 Only one market maker supplied a price. 

Straight Bonds: The yield is the yield m redemption of the 
mid -price; ih» amount issued is in millions d currency 
unde except lor Van bonds where it is in tHflicns. 

Change on mek— Change tw*r puce a wreefc earlier^ 

Floating Rats Notes: Denominated in dollars unless ofttr- , 

wise indicated. Coupon shown is minimum. C-dte —Pa ta f £^55 £ TB fcC K B * 

next coupon becomes effective. Spread =>Ua-gin atxve . , 

six-month eSered rate {t ftwe-month: § above maan 
rats) lor- US. doff are, -C.cpn-Th» current coupon. 

. C.yld* The currant yield. 

Convertible Bonds: Denominated in doitera nnleee o»er- 
vvtea indicated. Chg. day— Change or. day. Cnv. dffte- 
Firat.dafa .far coovaraion Into i ha res. Cnv. price— 

Nominal amocnr' of bond per share aa pressed in 
currency, of share ex oonvereion rats fixed at *»«*■ 

Prem^PeioePtaga premium of the current effective pnM 
of acquiring shares via die bond over the mast recent 
price of tbo shares* 


Zero coupon 
bonds from Du 
Pont, Penney 

By A bn Friedman 

A TOTAL of SfiOOm-worth of 
zero coupon Eurodollar bonds 
was launched yesterday as 
the market gained i point on 
the day. As six-month Euro- 
dollar deposit rates fell A 
per cent to 15 per cent, the 
Eurobond markets followed 
New York’s recovery. 

The new zero coupon paper 
came fa two Issues: The first 
was a S3 00m eight-year offer 
for Du Pont Overseas Capital 
priced at 33J per cent to 
yield 14.48 per cent and 
managed by Morgan Stanley 
and Nlkko Securities. The 
second was also for $300m» a 
12-year Issue for J. C. Penney 
Global Finance priced at 18-5 
to yield 15.10 per cent 

The actual amount of funds 
to be raised by these zero 
coupon bonds Is S157-2m, of 
which SI til. 7m will go to Du 
Pont and S55.5m to J. C 
Penney. 

The J. C. Penney Issue, 
managed by Credit Suisse 
First Boston, was said to be 
attracting Interest fa West 
Germany and Switzerland, 
though less in Japan, where 
other re cen t zero coupon 
offers have been find i ng a 
heme. 

-Meanwhile, fa the fixed 
interest* Eurodollar market, 
the S50 seven-year 16* per 
cent Arizona Public Service 
issue sold out last night, 
according to lead-manager 
CSFB. This is not surprising 
since the issue Is so far the 
only fixed-interest d^aj of the 
year and the market is 
hungry for such paper, pro- 
vided the coupon is pitched 
high enough. 

The Arizona paper was 
trading at a disc o unt of 
around 11 fa the grey market. 
There were rumours last 
night that it might be in- 
creased by 810m. There is 
none the less, gothing spec-, 
tacnlar about this issue, which, 
carries a yield similar to' 
recent Arizona paper. 

In the convertible sector a 
Siam 16-year private placing 
is being arranged for N1 chi- 
men, a Japanese trading 
group. The indicated coupon 
is 51 per cent and managers 
are Daiwa Securities and 
Sanwa Bank. 

The Euro D-Mark sector 
yesterday saw the launch of 
a DM 150m eight-year \ssue 
for Pemex, the Mexican state 
energy concern. The coupon 
came to 11 per cent, as pro- 
jected by a number of 
German traders suspicions of 
the Mexican name. Lead- 
manager is Commerzbank. 

The Pemex paper is 
expected To attract a tot 
of German retail Investors 
because of its coupon. Insti- 
tutions in Germany are said 
to be* staying away from this 
issue. 

The Euro D-Mark sector 
was quiet last night as prices 
rose } point on the day. 
Investors are still taking a 
wait-and-see approach. 

Prices in the Swiss franc 
foreign bond market were 
unchanged in quiet trading. 


Rrat quarter 

Revenue .... 

Nk profits 

Net per share 


1981-82 196081 
S S ’ 

, 96.5m 95.4m 

9.54m 9.08m 

0.07 0.73 


DIAMOND SHAMROCK 


Fo u rfl T qaerac 
Revenge — _ — 
J Net profits 


O The Financial Time* Ltd.. 1982. R9urwJe«Se?> in wtote 
nr in part in any fare* not perm-ned without Written 
con* ant. fists supplied by DATASTREAM Imeraetonei, 


i Net par share 

Yeer 

Revenue' 

We: prefee' 
Net bet ehere 


1981 I860 

5 S 
872.5m 848,7m 
59,7m 47.2m 
0fl6 0.75 

&38ba 3.T3b« 
121 3m 208.4m 
14t 340 


Final quarter boost for U.S. banks 


BY DAVID LASCELLES ft* NEW YORK 


LARGE U.S. banks reported 
healthy fourth quarter earnings 
yesterday, confirming that 1981 
ended on an upbeat note for the 
UJS. banking Industry, although 
loan chsrge-o£Es were higher, 
presumably because of the 
doubtful quality of loans to 
countries bke Poland and U.S. 
companies suffering from tfae 
recession. 

-Citicorp, the largest banking 
group fa the UjS- more than 
doubled its earnings before 
securities transactions, from 
$96m to $217m, although this 
included a S41zn gain from an 
equity-for-debt swap. Higher net 
interest revenue was the main 
contributor to earnings — a 
common pattern as U.S. bank, 
funding costs fefl sharply 
towards the end of last year, 
.while the prime rate fell more 
slowly. 

• This left Citicorp with a 9 per 
cent earnings gain for the whole 
of 1981, reversing the down- 


trend fa 1980. Citicorp has been 
busy restructuring its balance 
sheet and reducing its risk 
exposure to achieve healthier 
earnings growth. Tins, meant 
that its overall asset growth was 
slower last year, only 4 per cent 
to $119bn. 

Citicorp also reported strong 
growth fa fees and commassions 
from non-lendfag related busi- 
ness. notably foreign exchange 
activities which reached $265m, 
up from $101m fa 1980. 

Man uf a cturers Hanover, the 
fourth largest U-S. bank, earned 
$70.9m before securities trans- 
actions. or $2.09 a share, com- 
pared with $59. 5m, or $2-78, fa 
the same period of 1980. Earn- 
ings for the full year . were 
$256. 5m, or $7.61 a share, up 
from $230.2m. or $6.91 fa 1980. 

Bankers Trust, foe eighth 
largest LLS. bank, earned $57m. 
or $2.05 a share, fa the fourth 
quarter, an increase of 40 per 


cent from the $4Q.8m, or $1.52, 
profits achieved in the same 
quarter of 1980. For the fuU 
year, earnings before securities 
transactions were $292ihn. up 6 
per cent on the $ 180 . 9 m earned 
fa 1980. 

Mr Alfred RriWaim, Bankers 
Trust chairman, attributed the 
final quarter advance to higher 
-nee interest income, increased 
trading profits, higher fees and 
commissions, and lower, credit 
loss provision. But he added 
that operating expenses had 
increased. 

Bankers Trust’s non-perform- 
ing assets at tile end of 1981 
were 8494m, up from $42 1m the 
year before. The bank said this 
was because of the inclusion of 
loans “to a multinational com- 
pany and to certain foreign 
countries," which at diJi not 
name. However, analysts believe 
the company is International 
Harvester, trie Chicago trans- 
port equipment maker which is 


seeking new terms for more 
than $4bn of bank debt. Poland 
and Costa Rica are among coun- 
tries whose debts U.S. banks are 

reclassifying. 

First Chacago. Chicago’s 
second largest bank winch is 
fighting ate way bade to finan- 
cial health after ttoe setback of 
1979-80, showed a sharp jump 
fa earning for both she final 
1981 quarter and (he fufl year. 
But the size of the increase 
reflected partly the fact that 
last year’s figures were deeply 
depressed by the large write-offs 
the bank was taking to rebuild 
its balance sbeet- 

Net income in the fourth 
quarter before securities trans- 
actions was $36.4xn or 91 cents 
a share, up from $12. lm or 31 
cents in the stone period a year 
before. For the whole of 1981. 
First Chacago earned $122.1m 
or $3.06, up from $66. lm or 
$1.67. 


Securities transactions prevent 
net loss at First Pennsylvania 


BY OUR FfNAffQAL STAFF 

FIRST PENNSYLVANIA Cor- 
poration has continued into loss 
in its final quarter leaving the 
Philadelphia based bank bod- 
ing company n the red for 1981. 

First Penn, parent of trie 
oldest bank in the U.S. and 
which as the largest fa Phila- 
delphia, received a $1.5bn aid 
package in May 1980 to help 
save it from a liquidity crisis 
brought on by a mismatching 
of its fixed rate assets and vari- 
able rate liabilities. It has at 
best been only marginally pro- 
fitable since as it has battled 
to restore order to its finances 
and returned to the red fa its 
third quarter. 

For trie latest quarter it in- 


curred an operating fasg of 
$6.1m compared with the $45.4m 
deficit fa 1980. winch left it with 
a $ 5 - 2 m fass for the year against 
the $73.6m loss fa the previous 
year. 

However, after securities 
transactions it was $300,000 fa 
the black for the year, while for 
trie quarter the loss was un- 
changed at the net !eve£_ 

For trie year the per share net 
profit was 2 cents compare with 
trie $10.47 loss previously, with 
the closing three months con- 
tributing a loss of 38 cents a 
share against $2.91. 

• Security Pacifie, holding com- 
pany fo rthe second largest bank 


in California and the tenth 
largest in the U.S., saw its 
profits before securities trans- 
actions dimb only modestly 
from $49 .9m to $53.6m in its 
final quarter, leaving the annual 
total ahead from $181 .9m to 
$207 Jim. Per share profits for 
the year totalled $7.08 against 
$6.57, with an unchanged $1-80 
coming in the final three 
months. 

After securities transactions 
the quarterly net contribution 
was unchanged although for the 
year net profits were $700,000 
lower compared with $600,000 
last time. Pe rshare annual net 
profits were $7.05 against $6.55. 


Shareholder changes at Italian bank 


BY RUPERT CORNWELL M ROME 


TWO IMPORTANT changes are 
understood to have taken place 
in the ranks of the major share- 
holders of Banco Ambrosiano. 
the largest privately owned 
Italian banking group which is 
controlled by ' the controversial 
financiar Sig Roberto Calvi. 

It has been confirmed that 
Sig Orazio Bagnasco. owner of 
the Interprogramme/Europro- 
programme Property leasing 
concern and of the Ciga luxury 
hotels group has acquired a 


bolding of up to 2 per cent 
similar to that taken, three 
months ago by Sig Carlo de 
Benedetti. chief executive of 
Olivetti. 

Meanwhile, it has been 
reported that Istituto per le 
Opere di Religione' (IOR)— 
—effectively the Vaticans bank 
— has disposed of its own 
minority interest, variously 
estimated at up to 5 per cent of 
Ambrosia nos equity. 


Sig Bagnasco. one of the 
emerging luminaries of the 
Milanese financial establish- 
ment, is currently embroiled in 
an extended fight with trade 
unions over his plans to reduce 
the total workforce at Ciga by 
600 over the next few months, 
as part of his drive to put the 
group back onto a sound foot- 
ing. Under this strategy, the 
hotel concern recently lifted its 
capital to L37.8bn (S30.7mj 

from the previous L14bn. 


German Ford 
steps up 
production 

By Kevin Done in Frankfurt 

FORD-WERKE, trie West 
German subsidiary of Ford of 
trie U.S., has staged a deter- 
mined recovery following its 
disastrous year fa 198Q and 
achieved a 13.9 per cent 
increase in production last year 
to 734,250 vehicles. 

Sales rose by 10.3 per cent 
to 774,360 vehicles, with the 
major boost coming frotn the 
success of the new Escort, 
introduced fa trie autumn of 
1980. 

Last year the Escort was 
Ford's most popular model 
selling 276.140 units compared 
with 133,294 in 1980. In West 
Germany itself aggressive and 
expensive marketing campaigns, 
particularly in the first six 
months, enabled Ford to 
increase its new registrations 
by 10 per cent to 267,000. 

Ford raised its share of the 
domestic German car market to 
11.8 per cent compared with 
10.3 per cent in 1980. Vehicle 
exports rose by 12.5 per cent 
j to 501,800, representing 64.8 
j per cent of total production, 
against 63.6 per cent a year 
i earlier. 

j Following the redundancies 
of 1980 the Ford workforce 
i remained fairly stable last year 
i and totalled 49.388 at the end 
i of December, compared with 
49.767 a year earlier. 

After slumping to a loss of 
DM 462.8m in 1980 when pro- 
duction fell by a quarter. Ford 
expected to have at least 
broken even last year. 


Ail of these securities having been sold this announcement appears os a mailer of record onJy. 


UNION 

CARBIDE 


Can. $50,000,000 

Union Carbide Canada Limited 

16% Debentures due January 15,1989 


Wood Gundy limited 
Amro International Limited 
Commerzbank Aktiengesellschaft 
Credit Suisse First Boston limited 
Orion Royal Bank Limited 
Society Generate 


Morgan Stanley International 
Banque Bruxelles Lambert SjL 
Con tinental Illinois Limited 
Merrill Lynch International & Co- 
Salomon Brothers International 
Soriete Generate de Banque S.A* 


Swiss Bank Corporation International limited 


Bank Julius Barr International 

Limited 


Al-Mal Group AfahK Bank of Kuwait [KS.G.J Ajgemene Bank Nederland NV. Amhold and S-Blelchroeder,Tnc. 

Barca del Gottardo Barca Nazianale del Lavoro BankBeusser&Ge AG 

TWk Leu International Ltd Bank MeesA Hope NV Bankhaus Hermann Lamps KG Banque Generate dn Luxembourg SLA. 
Banque de llndochine et de Suez Banque Natfonalede Ears Banque de Neuflize, ScMimberger, MaHet 

Banque Popnlaire Suisse S A Luxembourg Banque Worms Bayerische Hypothpkpn- nnd Wechsel-Bank 

Bayerische Verehtsbank Berliner Handels-uod Frankfurter Bank Chase Manhattan Oedi! Indusfcriel et Commercial 

Aktwnpvflortoll Lmnlcd 

Credttanstalt-Bankverein Dai-Ichi Kancyo International Dahva Europe Richard Daus & Co.Banlders 

Unlod Uni!«! uraikHa.-sYV.PclBrtLa 

Deutsche Grozentrale DGBarik Dominion Securities Ames DresdnerBank European Banking Company 

-DcolMtoKmanmiulbaiil.- Deutreli»Gono*U3Hcha[lriimk AItli«iSEsHlv.]tt!l Lanrtrd 

Hnanciere Dewaay SLA. Fuji International Finance Genossenscbaftfiche Zentralbank AG 

‘ Vienna 

Qrozentrale xmd Bank der osterrmchischenSparkassen. Greenshields Ham bros Bank Handelsbank NEW. [Overseas] 

.UliengenBsdaafi tncorpacated i wt— I 

Hesaiacfae T , i«irk«hank Kiddeijeabod y I nternati o nal Kzedielbax&SAIjxxembourgeoise 

Kuwait Foreign Trading Contracting & Investment Ga [SJkK.] KmvaH Investment Company fSAK) 

LTCB International McLeod Yoan g Vfei r international M t aiufactor er s Hanova Merck, Fmdc& Co. Midland Dohe^ 

Mitsubishi Rank (Europe) SA Morgan Guaranty lid Nesbit t Tho mson NorddeuischeLandesbank Nordic Bade 

Itowi CKuen'raw Umgs d 

Pierson, Hekhing & Pierson NV Rea Brothers Renouf International (MZJ 

Ltarlfd f,mtnui 

Schrfider; Munchmeyer.Hen^t & Co. Skandinaviska EnsldldaBankm 


SaLOppenhenn jn&C5fl. 
Sanwa Bank (Underwriters] 

Limited 

1“CV. Sfevenburg’s Bank 


Standard Chartered Merchant Bank 
lUBdnbei&Ca. 


Union Bank of Switzerland (Securities) 
yfestdeniscfaB T^rtoqhftnk (Srozentrale 


Sodete Sequanaise de Banque 
Veresns-und Westbsrik 


Vifestfalenbank 







Financial Times Wednesday January; 20 1982 

SSL INTL. COMPANIES & FINANCE 


US MANAGEMENT RESHUFFLE 


ItdcmrKaconsUn&mimHsik^mtKpid^tosiiiscr^^arpmiiase^sec^tita. 

U.S.$80, 000,000 

Nippon Electric Co.,Ltd. 

(NipponDenki KabusMki Kaisha) 

l Incorporated with limited liability under the Commercial Code of Japan) 

514 per cent. Convertible Bonds Due 1997 


SEC 


Thefollcwing have severally agreed to purchase the Bonds: 

Daiwa Europe Limited 

Credit Suisse First Boston Limited Swiss Bank Corporation International Limited 

$ 

Amro International Limited Banque Nationale de Paris 

Deutsche Bank Aktiengesellschaft Robert Fleming & Co. limited 

Kleinwort, Benson Limited ' Kuwait Foreign TradingCtontracting & Investment Co. (SAJK.) 
The National Commercial Bank (Saudi Arabia) The Nikko Securities Co., (Europe) Ltd. 

J. Henry Schroder Wagg & Co. limited Societe Generate de Banque S.A. 

Sumitomo Finance International Yamaichi International (Europe) Limited 

The Convertible Bonds Due 1 997 of $5,000 each, issued at 100 per cent., have been admitted to the Official list by 
the Council of The Stock Exchange, subject only to the issue of the Bonds. 

Interest is payable semi-annually, in arrears, on 3 1st March and 30th September in each year, except that the first 
interest payment will be made on 3 1st March, 1982 in respect of the period from 4th February, 1982 to 3 1st March, 
198Z 

Particulars of the Bonds are available in the Extel Statistical Service and may be obtained during usual business 
hours up to and including 3rd February, 1982 from the brokers to the issue: 

Vickers da Costa limited, 

Regis House, King William Streep 

, London EC4R PAR. 

20th January, 1982. 


This announcement appears as a matter, of record only. 



Polysar Limited 

(Ontario, Canada) 

Dfls 31,500,000 
Term Loan 


Arranged and provided by 

NMBBANK 

Nederlandsche MiddenstandsbankN.V. 

. in association with 

Chase Merchant Banking Group 


October 19S1 


This advertisement is issued in compliance taith the requirements of the Council of The Stack Exchange, 
It does not constitute an offer of, or invitation to the public to subscribe for or to purchase, any securities. 

$50,000,000 

(Canadian) 

General Motors Acceptance Corporation 
of Canada, Limited 

(Incorporated under the laws of Canada) 

16W&NOTESDUE FEBRUARY 1,1989 

Payment of principal, premium if any and interest imconditianally guaranteed by 

GENERAL MOTORS ACCEPTANCE CORPORATION 

(Incaporated in the State of New York, USA.) 

The Managers have agreed to purchase the Notes: 

MORGAN STANLEY INTERNATIONAL 


ALGEHENE BANK NEDERLAND NM 

BANQUE BRUXELLES LAMBERTS A . . 

BANQUE NATION ALE DE PARIS . 

JOOSHNION SECURITIES AMES 
Limited 

MERRJLLLSfNCH INTERNATIONAL & CO. 

UNION BANKOF SWITZERLAND (SECURITIES) 

limited 


AMBOINTERNmONALUMITED 

BASQUE GENERALS DU LUXEMBOURG SJL 

CONTINENTAL ILLINOIS 
limited 

KREDIETBANK INTERNATIONAL GROUP 

socj£t£g&n£raledebanquesa. 

WOODGUNDY 

limited 


The Notes, in denominations of Can. $1,000 issued at 100 per. cent, have beenadmrttgtotheOffu^ 

The Stock Exchange, subject only to the issue of die Temporary Note. Interest u payable annually in arrears on February l f 
commencing onFeoniary 1,1983. 


January 20, 1982 


Cazemce&Co n 
■ 12, Tokenhouse Yard, 
London 
EC2R7AN. 




Renault tightens grip on AMC 


BY mm. DODSWORTH IN PARIS 


LITTLE BY little, Renault of 
France is moving into a position 
where it pulls more and more 
of the strings ' at American 
Motors (AMC), the small- car 
and. Jeep manufacturer. 

Following this., week’s top 
management reshuffle, M Jose 
Dedeurwaerder, one of Renault’s 
recognised high filers,' has 
emerged as managing director 
and effective number two in the 
American group. His job will 
be to mastermind' the introduc- 
tion of a Renault-designed car 
in the U.S., using Renault- 
planned production lines, many 
Renault supplied machine tools, 
and some Renault funds. 

With the French company, 
also owning 47 per cent of 
AMC’s equity, the change looks 
like just another step in the 
steady process towards full 
French colonisation of the 
American company. 

Renault itself, however, is 
playing the whole affair with a 
very low profile. AMC, says the 
French nationalised- group, 
remains an American concern, 
managed mainly by Americans. 
Mr Gerald Meyers, whose resig- 
nation as chairman caused the 
reorganisation, went of his 
own accord. There is no inten- 
tion to manage AMC from Paris, 
and no plan to Talse the French 
stake in the U.S. company. 

This discretion derives from 
the French group’s strategy of 
using the basic American Motors 
organisational structure to 
establish itself . in North 
America. 

- Renault moved In on AMC 
primarily because of the U.S. 
group’s “ Americanism.** It 
wanted a ready-made partner 
in North America which knew 


the market, had a sales network 
(about 2,200. outlets), and a feel 
for what Americans wanted^ in 
their cars. Thus the alia is for 
1 gradual ehange -as Renault 
grafts its own methods on io 
■those of AMC. - -. a-. 

It is '.not difficult to find' 
critics of these tactics. . Some 


NET PROFITS 
OF AMC $m 

. 1971 - 

' 6 

1972 

16 - 

1973 

45 v 

1974 

28 \ 

1975 

f28 \ 

1976 

t46 

1977 

3 

1978 

24 

1979 

68 

1980 

■F198 

f'Lou 



competitors think Renault 
would have done better to take 
the plunge,- like Volkswagen, 
with a North American opera- 
tion entirely under its own 
management and control. Many 
are sceptical about the worth 
of AMC, - which lost ?19&m in 
1980, may- have lost another 
$100m last year, and could, it 
is reckoned, drain further 
funds out of the French com- 
pany. Renault has already 
spent, or' will be spending, 
around $350m on AMC. 

* Renault's response to these 
attacks will begin to be felt 
later this year. In June, "the 
American version of -the R9, 
Europe’s car of the year, will 
begin to roll off the AMC pro- 
duction lines. By December, the. 


plan is to be producing about 
600 vehicles a day at the AMC 
plant at Kenosha, running up to 
800 in 1983. With an output in 
this range— between 150,000 
and 200,000 a year— AMCs pro- 
duction will bound ^ up from 
; 110,000 last year and -Renault's 
sales,, if aR goes Well, Wfli also 
rise flrom their present lowiy 
level of 30,000. , . 

By producing ta^the .’UJL, 
while reaping' the advantages 
of TseUfng in the world's two . 
largest markets, Renault is 
hoping to get the AMC R9 into 
the Salesrooms in America at 
arouiod the -same' price- 1 as toe 
Ford 'JEscort—a car planned on 
a similar two^continent basis. 
The cost to AMC isf calculated 

1 8300m said 8350m, ; 

m -its own' resources 
nks. " 
small car by tradi- 
erican standards,; 
mjeal, and made on - 
nceived rbbbtised 
lines. Is ah enor- 
atant mode for the 
pany. If it' falls, a . 
part of ■ Renaultfs . 
earn collapses with 

rceeds, it will be a ; 
for a -rapid. expan- ; 
lenault/AMC. links, 
de a new- 8300m 
planned for 1 'intro?, 
dg 198S-1984. 
vaerderis rote in all ' 
le moment, at least. 


to hulk sure that American R9 - 
comes p rough its launch period, 
as smolthly as possible. After . 
bringml the car into production 
in Frame at the Doiial plant on 
revolutionary automated produc- 
tion linel he is not being, asked 
to do to&ame thing at Kenosha: 


Whether' that -means, that he, 
or some -of the. 30. or soFrench 
tft nhpicians now working: in the 
UJS., may eventually .entirely 
colonise the American -.group 
remains a r matter . for, ispeenla. 
taon. Renanlr maintains toat. jfs : 
original : concert .-of -a! two-way 
collaboration remains wdl on 
course: it iseuirentiy gearing 
.up, for esample.to sell the new 
; range of economical-Jeeps in 
Europe. ;'i. 

- ' But if is difficult to -see how, 
over . the-- long, term, the much 
larger French group 'can -avoid 
becoming tte driving partner ±a 

the relatkmshlp. .; ' S ;_. ' ' . 

; The disparity between the two 

- is besLineasaited in theproduc- 
i tlon figures, with' AMC’s 110,600 
-vehicles of. last year amounting 
■ to only 6 per cent.. of Renault’s 

total- output- to addition to : 

thattiifferen.ee, most oftheflaw 
. of. materials is one way at the - 
moment, .with .4heFretKhLaKn- 1 
jpany aiming to seU. more cars' 

inNorth America (incfcidin&the 

- R18 <fiesel and the Ftago Injec- 
tion. and turbo models), ae well 
as mechanical parts is the TLS. 

. version of toe R9. 

It is calculated, lor example, 
,th4t up to 5p per cent at the 
main components in-toe new car 
.will be exported from France, 
wtrile at least FFr 400m (888m) 
worth of its own. machine took 
have also been. suppKecLto the 
AMC; has already become 
the sort 'of ‘tovestmenLthat has • 
to be controlled very closely, . 
even more so at a time whea 
.French taxpayers are likely to 
beaxtnei»articulariy sensitive to. 
the doings of the nationalised 
sector. • . ' . i ;i* - • 


Bankers consider bankruptcy for Ogem 


BY CHARLES BATCHELOR IN AMSTERDAM 


THE BANKING consortium 
which has provided a financial 
package for the rescue of the 
Dutch conglomerate Ogem is to 
review toe company’s future. 
It may file for bankruptcy later 
this week. 

The six Dutch and 15 foreign 
banks, which agreed in 1980 to 
provide a finan cial 11 umbrella " 
while Ogem' carried out a 
restructuring, will meet com- 
pany and Government repre- 
sentatives on Friday to discuss 
a solution to its continuing 
problems. Ogem’s efforts to sell 
large parts of its trading and 
industrial empire have met 
with only partial success. 

The- banking consortium, 
which is led by Algemepe Bank 
Nederland (ABN), Amsterdam- 
Rotterdam Bank, and. Bank of 
America, are considering how 
to limit toe damage of a 


possible bankruptcy. Ogem com- 
prises companies with both good 
and poor prospects. ’ It is 
questionable whether bank- 
ruptcy is the best solution for 
toe group as a whole, said Mr 
Hargert Langman, a managing 
board member of ABN. 

Ogem's bankers provided 
FI 630m (8250m) credit for a 
two-year period in 1980. Last 
year toe Statebacked National 
Investment Bank provided a 
further FI 75m in loans, and toe . 
banks extended their credit to 
January 1984. 

In return for this support 
Ogem agreed to dispose of • 
activities with a net asset value 
of FI 400m. In 1980 It sold 
assets worth FI 133m. slightly 
less than its FI 150m target 
Last year it sold considerably 
less than toe FI 150m annual 
disposal target 


-. The slow pace of disposals 
has prompted Ogem to put two 
large trading subsidiaries . up 
for sale. This are: the Stokvis 
Group and toe New -African 


Trading Comkny 
with between Jthe 
over of FI 1.051b . 
force of 3,480. A 
The company 
-considerable po% 
bankers in return r 
ABN carries ..oat' 
review of toe 
Creditor and stock 
a stormy sbarehold 
last MSy, Ogem rev 


of disposals had transferred^ control of some 
eh to put two of tits subsidiaries -to its. 
iridiaries. up bankers. 
a the Stokvis Ogem, which began as an 
Sew -African electricity utfttty to toe Dutch 
y (NAHV), colonies, developed trafing, 
em ar .tizm- engineering, metais processing 
and a work- and installation, interests in tte 
1950a It latmr developed con- 
s transferred . struction. - activities -' but toe 
ere to ' its- rapid rate .nf , expansion over- 
fir credit and • stretched the company’s manage- 
t Va monthly meat resources, and it Went into 
\ company's the red 4n‘ 197& 

: risition; ■ At : It . Jhcttrted ' a net ' TosS-of 

dew meeting Fi 1185m In, 1980. .. First half 
vealkd It ; losses to-198t totalled FI 11.6m. 


Bulova Watch plans big 
reduction in workforce 


I BY JOHN WICKS IN ZURICH 

BULOVA WATCH, a Swiss sub- 
i sidiary of Loews Corporation, 
) toe diversified U.S. industrial 
group, plans to cut its workforce 
from 700 to 300 over toe next 
year or so. 

The cuts will lake place gradu- 
ally up to 1983, hut some 300 
people will lose their jobs by 
this summer, the company said 
yesterday. It will cease pro- 
duction of watch movements and 
will in the future buy compon- 
ents. mostly from the Swiss 
company, Ebauches, which is 
part of the Asuag group. 

Bulova said the contraction 
had been forced on the com- 
pany as a direct result of com- 
petition from the Far East. Its 
recent trading record has been 


Wessanen 
may expand 
in Malaysia 

By Our Financial Staff 

WESSANEN NEDERLAND 
ihay move part of its palm oil 
refining factory and activities 
currently in tbe Netherlands to 
Malaysia, Mr K. K. Vervelde, 
the managing director, said so 
as to enable it to concentrate 
on more sophisticated activities 
such as the production of cocoa 
butter substitutes. 

The company already has two 
palm oil projects in Malaysia. 
One is a wholly-Wessanen- 
owned trading company called 
Friwessa and the other a joint 
venture company with Dunlop 
and Timuran of Malaysia, called 
Segemat Edible Oils, in which 
Wessen has a 25 per cent 
interest. 

Mr Vervelde said demand for 
cocoa butter substitutes would 
increase, as cocoa fats were 
expensive. Palm Oil was cheaper 
and world demand for vegetable 
oils was increasing, particularly 
in the Middle East. 


poor. 

In 1980 Bulova contributed 
only 0.7 per cent of Loews’ net 
operating profit of $222in 
despite a sales contribution of 
almost 5 per cent, which made 
the watch company toe fifth 
largest division within Loews I 
in terras of turnover. I 

Bulova will continue the j 
mounting of movements into 
cases, quality control activities, 
and a “limited, amount” of 
movement assembly. 

The * co-operation between 
Bulova and Asuag is seen as 
enabling the Swiss watch in- 
dustry to retain its position in 
U.S. markets. The link with 
Asuag will also cover marketing 
and Swiss design. 


Elektro-Finanz 
accepts 
U S. bid 

By Our Zurich Correspondent 

THE » ACQUISITION of the 
Swiss Elektro-Finanz company 
by tbe Essex Group subsidiary 
of United Technologies of toe 
U.S. will create the ' world's 
largest independent producer 
of electrical wires, cables and 
insulation materials, according 
to United Technologies. 

Joint annual sales of Essex 
and Elektro-Finanz - would 
approach $lbn. 

Over 999 • per cent of the j 
shareholders of Elektro-Finanz 
have accepted the $67m cash" 
and notes bid made through i 
Essex Isola a special affiliate. - 
Essex is hoping to benefit 1 
from toe experience of the ! 
Elektro-finanz subsidiary Isola- 1 
Werke, particularly in the field j 
of insulation technology. In turn I 
Essex will- provide the Swiss 
subsidiary with technical sup- 
port in toe wire production and 
treating sectors and allied 
operations. 


■ ' Tq the Holders of ... ■ . : ' 

International Income 


Short Term *A! Units ' V : 

Distributiortlbiits— m Bearer Form 
Short Ternf TF Unite ’ ^ \ 

Distribution fi/rits — in Bearer Form 
Long Term Units ^ -r All Holdets _ 

- Midland Bank Trust Company (Channe .Islands) Limited as ' 
Trustee of the above mentioned Firm has . declared the 
following dividends per Unit "for the fihfijcTal period ended. : 
31 st December, 1981, payabie art toe 29b January, 1982, in . 
respectof Uniriinissueon3lstpecember,h8l>-- , / . 
Short Term ‘A' Unite - Distribijrtion Units 

US$0.0575 per Unit-payable against Coioon No. 1. . 
ShortTerm 'B' Units -Dfetribution Units ‘ . 

US$0.0550 per Unit- payable against Coujto No. C - 
Long Term Units •„ \ • .’^V 

US$2.00 per Unit- poyabfe against Coupon to. 21. ; 

Unit holders should send their Coupons to rathe the Trustee - 
at 28/34 Hill Street, St Helier. Jersey, Channel tfands or to 
one of the fol lowing Payrng Agents y. ? ‘ 

Bankers Trust Company, One Bankers Trust Faza, New' 

. York. N.Y. 10005, and . 

Dash wood House, 69. Old Broad Street London E^p 2EE. ’ 
Banque G&nfirale du Luxembourg SA, 14 Rue Alringeh, 
Luxembourg. .. - v 

Arrangements’ have been rrrade. whereby, holders of t| Long 
Terni Units in issue st 29th January, 1982 may reimtst ^re 
■'dividend paid st that date in additional Unite at a puchasa\ 
price equal to the Net Asset Value per Unit at 1st Fekuary. - 
1S82 (as an indication, the Net Asser vafue per Uni was 
US$1 9.68 on 11 th January, 1 982). This right will tfe termnjied.: 
at the close of. business on 2Btb February;' 1982. Long 
Unit holders who . desire to reinvest their dividend shmld- ! 
advise the Trustee or Paying : -Agent accordingly - w«n" 
presenting thrarcoupons for.payment - ? . : . i 

Midland Bank Trust Company : 

(Charinel lslands) limited _ 

. Trustee ... . i 


Datedl 4th January. 19B2 . 




National Steel acquisition 


BY GILES MERRITT IN BRUSSELS 


NATIONAL STEEL, one of. the 
leading U.S. steelmakers, has 
acquired control of International 
Metals toe Luxembourg-based 
raw materials trading and pro- 
cessing group. 

The move is understood to be 
part of National SteeFs current 
broadening of its operations to 
include -raw materials and fin- 
ancial services, together with 


aluminium production and steel 
fabrications. 

International Metals has con- 
centrated cm processing and 
trading raw materials for -toe 
steel and chemical industries 
since it was established in 1959 
by American Interests. The raw 
materials dealt in include ores, 
minerals, ferro-alloys, metals i 
and refractories. I 


The 

U.S. 

Floating Hate Se 

.Frirthi© 

2 1st January, 


has been fixed at l 
peyafcteon 
2IdJrir, 


•' :> .-A*:- 


r 








^ tinne, Witti-its -etiisiiugyfieet. He- 
justifies ihevpurchase- as -an 
* investment .-in Singapore Air- 
. lines' • ^continuing pursuit <rf 
excellence. V . 

- : “Between^ 1882 and 1985 we 
L. would uadotdatedly be better off 
rr financially. ; with the existing 
aircraft," • Mr Pillay says. 
“* “There would be far dewer 
.•headacKesi But at ■ would 
r'f; certainly ; detract : .firom our 
■*>* reputation as a progressive air- 
frfi line trying to otter the customer 
?*• . the best. And come tire latter 
a*? half? of. tire ,1980s there would 
•jJ ' be -major problepis. XhfrdecLsion. 
wv was put' 'to the. board _and the 
overwhelming . cbnsersus was 
-3*" that it was a b&risk financially 
ci; btit to preserve bur reputation 
_r iii theiuture vfehad.tbgo ahead 
' ■^with :the ' purchases." * 

>1; 'r:- 016 expansiML of SIA’s fleet 
is smaller than - the new adr- 
.j_ craft orders might suggest The ' 
..*?•' airiine. is to' biiyjolght Boeing 
■ J "' 747s with stretched upper decks 
tw' 'andr itas options bn two. more. 
,& It has also ordered six Airbus : 
fr'-A- 300s. with options on two 
r i Airbus. A 810s. 

*: Howevbr. itiie net addition to - ' 




terms of seat capacity STA wfll 
be able to offer an additional 
10 per cent a year between 
now and the mid-1980s. _■ 

By that time, the airline will 
have a modem- fleet consisting 
of 12-. Airbuses for -its sbort- 
and medium-haul routes and 20 
Boeing 747s for."the 'long-haul 
sectors. The Boeings already in 
-The fleet are. powered by Pratt 
•and Whitney JT9D-7Q -engines 
and the hew ones, -will have 
even more fael- efficient Pratt 
and Whitney JT9D-7R4G2 or 
Rolls-Royce RB21J-524D4 en- 
gines. The . decision on the 
engine order, with spares worth 
$160m; wfll be taken by next 
month. ■ . 

Even so the financial -burden 
of buying new aircraft Is con- 
siderable. Sale of the: older air- 
craft may yield $500zu up to 
1885, and. Mr Pillay calculates 
that SIA. will hot have to bor- 
row to pay for its new aircraft 
But it will almost certainly ■ 
have to borrow to meet other 
debts, which total about 
S$3bn- (UB.$1.4bn.),' of which 
S$2bn falls due over the neat 
five years. . 


tends to be classical. 

The rest of his time is spent 
at The Development Bank of 
Singapore, of which he is chair- 


Singapore Airlines 
believes the maintenance 
of its reputation for 
quality is worth the risks 
involved in its heavy 
spending on new aircraft 


man, and at the Finance 
Ministry, where -he is Per- 
manent Secretary in charge of 
revenue. Mr Pillay takes the 
lead in setting SIA’s strategy, 
leaving day to day matters to 
Mr Lim f!hin Beng, the air- 
line’s managing director. 

.. Mr Pillay has laid down a 
corporate motto for the airline. 
“We aim to provide the best 
service the airline industry is 
capable of at the lowest cost 
to us.” 

In common with other Aslan 


drinks and headsets and other 
friHs, have seen The European 
giants capitulate on 1 such 
matters, at least within Asia. 

SLA married local tradition to 
Western high fashion when it 
got Pierre Balmain to design 
the sarong kebaya uniforms of 
its stewardesses. It has tried to 
'woo the flying public to an air- 
line offering service that other 
airlines dream of. 

But Efe tn the early 1980s 
has become more difficult- In 
1980-81 SIA managed to stay 
profitable, beet the group’s after- 
tax profits of S$117m and air- 
line profits of S$94.8m were 
much higher than the pre-tax 
profit from airline operations, 
which was only S$ 18.2m. Load 
factor slipped to 69 per cent 

The low proportion of airline 
operations in profits reflects 
in part SIA’s attempts at 
diversification. In addition to 
immediate support services, 
such as airport terminal 
services, duty -free shops and 
Singapore aero engine overhaul. 
It has hotel interests, runs an 
insurance company and late last 
year strengthened its computer 


Malaysian property group 
makes two acquisitions 


CSR expects downturn 
in annual earnings 


BYWONG SULONG IN KUALA LUMPUR 


ASSOCIATED, PLASTICS In- 
dustries . (API), a restructured 
Malaysian property company, 

. has ^ made two ^requisitions ; 
valued at nearly 62m' ringgit 
„ v ; {527.4m). , 

'API said it is to take a 63.7 
c per Cent stake in Sarawak Motor 
. Industries through an exchange 
iVdf %ree of ; its own shares 
^' vaitted .at 2 ringgit each for 
of SMFs shares. It is to 
^purchase 18.46m shares from 
fjanily interests 'and associates 
'‘V of Tan Sri. Xtehxoan Yafcub, The 
^ .former Chief Minister and p*e- 
%■. sent Governor of Sarawak, for- 
its 62.7 per cent stake. but is to 
c ' extend The offer to other share- 
K holders. 

- SMI has- - the franchise, for 
‘^.Japanese Hino vehicles and also. 

assembles Toyota trucks and 
* Mitsubishi cars. It Also has pro- 
! -perty development and logging 


interests. t ' . 

.'The second ‘‘acquisition by 
API is a 13.5 acre site in J oh ore 
Barn, South Malaysia, where 
approval has been given for 
nearly 400 units of fiats and 
commensal buildings. 

The land is -valued at 25m 
ringgit and -API will issue 12.5m 
shares at 2 ringgit each to pay 
for the acquisition. 

The acquisitions will increase 
APFs paid-up capital to 137m 
shares of one ringgit each, with 
a net tangible asset backing of 
1.44 ringgit each. API is being 
traded on The Kuala Lumpur 
Stock Exchange at around 3 
ringgit. 

. To reflect its new image, 
directors propose to change the 
name to AHied Properties and 
Industries, thereby retaining 
the API initials. 


BY JOHN WICKS IN ZURICH 

EARNINGS of CSR, tile 
Australian natural resources 
group, will “ inevitably ” decline 
for the current financial year 
ending March 31. This will 
follow the 45 per cent increase, 
to A$1 12.1m fU.S.S125m) for 
fiscal 1981, when group turn- 
over rose by 31 per cent to 
A$2.93bn. 

. Mr Gordon Jackson, CSR 
general manager, attributed the 
expected drop particularly to 
continued weak prices for sugar 
and aluminium. The fall in the 
sugar price had been largely 
responsible for a 30 per cent 
decrease in the Sydney group’s 
earnings in the half-year ended 
September 30. 

Prospects for the group were 
good in the medium term, said 
Mr Jackson at a Zurich 
presentation. Top priority was 


the development of Delhi Inter- 
national Oil Corporation* 
acquired by CSR in November, 
where “significant benefits” are 
expected from its oil and gas 
activities in Australia after next 
year. 

After the downturn in the 
first half of fiscal 1982, CSR has 
taken steps to cut costs and 
rationalise operations in the 
concrete sector and elsewhere. 
At the same time, an improve- 
ment in coal prices and better 
results- from its building 
materials division have gone 
towards offsetting the effects of 
the poor sugar price. 

Mr Jackson said that the com- 
pany would welcome a “ modest 
amount ” of foreign portfolio 
investment but would not. how- 
ever. want anything like a 
strategic holding in CSR by an 
oil company. 


27as announcement appears as a matter of record only 


GRUPPO 

EFIM 




Societa per Azioni Finanziaria 
Industria Manifatturiera 

£75,000,000 

Revolving Acceptance Credit 

g u a ran teed by 




Ente Parte cipazioni e Finanziamento 
Industria Manifatturiera 


arranged by ' 

S. G. Warburg & Co. Ltd. 

in conjunction with 

Soditiclnteinational S JL 


provided by 

The MitsabisM Bank, Limited Commerzbai & AMmges eHschaft 

The Sanwa Bank, Limited Crocker National Bank 

gn.-^ TvisTi Investment Bank Limited Bank fur Gemeinwirtschafi AMengeseUsdiaft 

Banq ne de ITndochme et de Suez Banque de Paiis et des Pays-Bas 

ftOTmSh^y&Co. Limited Chaiterlioiisejaphetple 

17,^. Tfaihg - TiwV TArritod Guinness Mahon & Co. Limited 

The SoKkaidoTafaJ^e^ Bank, Limited The Xyowa Bank, Ltd. 

rvy jj t Bank of Japan The Mitsubishi Trust and Banking Coiporation 

Trastmdaanking Company, Limited N. M. Rothschild & Sons Limited 

’ The Taiyo Eobe Bank, Limited 

S. G. Waiting & Co. Ltd. 




December 1B81 


However, Mr Pillay claims 
that SIA wall stiU be in the 
black this year but says it has 
been hit by tough competition 
and by the strength of the 
Singapore dollar, which together 
will make ait difficult to achieve 
the same level of operating 
profits. 

The airline has also faced 
accusations of illegal price cutt- 
ing, which led to a row with 
West Germany when the 
Federal Republic’s Government 
refused to confirm SIA’s winter 
schedules, and to Civil Aero- 
nautics Board hearings in the 
U.S. So fiercely has the airline 
responded to these criticisms 
that some Singaporeans describe 
it as “ squeling before it is 
hurt.” - 

Mr Pillay’s case is essentially 
that SIA has been singled out 
as a scapegoat, because of its 
success. ~ “We would like a 
clean market where there is 
transjarency of fares. We can 
always hold our own because 
we believe we have a superior 
product” He pleads for air- 
lines- to be allowed greater free- 
dom to set fares. 


FAI again 
bids for 
insurer 

By Graeme Johnson fn Sydney 

FAI INSURANCE of Sydney 
has launched a takeover hid for 
Mercantile Mutual Insurance, 
almost a' year after making its 
first -attempt to gain .control of 
HUL 

The offer values. MML at 
A $35 .3m (US$39. 3m) but is only 
seen as an attempt to gads a 
strong minority in the company, 
in which Natiosxde Neder- 
landen, (the Dutch insurer, has 
a 50 per cent stake. 

Nationate ' Nederianden 
acquired its controlling stake 
after FAI (triggered a bid battle 
with QBE Insurance, pant of 
the. Bums, Phdlp group. FAI, 
headed by Mr Larry Adler, bid 
A$4 a share, but was outbid by 
QBE, which was in turn outbid 
NN’s A$6 a share offer. 

Mr Adler tendered haH of 
FAI’s holding am MMI to the 
Dutch group's offer and with the 
profit from this sale has been 
steadily .building a base from 
which to .launch the latest offer. 

FAI is currently offering 
A$2.18 a share, which is well 
below the MMTs asset backing 
-of AS6.95 a share. 

Mr Adler expects to win 
roughly 30 per cent . of the 
MMTs total capital through the 
bid, and by the close of trading 
on Tuesday tire company had 
22.5 per cent. 


MoetHennessy 

Interim Dividend Increased 
At the meeting of 8th January 1982 the 
Board of Directors declared an interim 
dividend of F7 with a tax credit of F3.50, 
i.e. a total dividend of FI 0.50. In 1981 
the interim dividend amounted to F6, 
and to F9 with the tax credit. 

This dividend is payable from 1 st February 
1 982, against coupon no. 33. 

The Chairman stated that the activities of 
the Group were very satisfactory and 
confirmed that the turnover and consoli- 
dated results would be significantly 
higher for 1 981 . 


* - -FREE-STATE DEVELOPMENT AND 
INVESTMENT CORPORATION LTD. 

^incorporated in the Republic of South Africa) 
INTERIM REPORT AND INTERIM DIVIDEND 
Unaudite d financial results 6 months 6 months Year 


Net revenue excluding profit 
on realisation of investments 
Profit on realisation of invest- 
ments 

Profit before taxation 

Taxation 

Profit after taxation 

Number . of shares ip issue 

1000's) 

Dividends per share — cents 

-Hmterirn 

—final 


Cost of dividends, ROOT 545 545 1,725 

* Includes the special dividend of BL27Sm from Tavistock 
Collieries Ltd. 


Listed investments ■ 

Market value 

Book cost 


6 months 
ended 
3L12JS1 
ROOT 

6 months 
ended 
31.12.80 
ROOT 

Year 

ended 

30.6.81 

ROOT 

1^68 

1,316 

4,053# 

162 

— 

8 

3*530 

392 

1,316 

225 

4,056 

422 

1438 

1,091 

3,634 

3,630 

3,630 

3,630 

15.0 

15.0 

15.0 

32.5 

54 5 

545 

1,725 


Appreciation 


at 

at 

at 

3U2.81 

31.12.S0 

30.641 

BOOT 

ROOT 

ROTO 

23,060 

' 28265 

19,766 

6427 

6413 

5.942 


21,952 13,824 


Net asset -value per share 
. (including unlisted invest- 
. ment and mineral rights at 
book values) — cents 


At 14th January, 1982, the net asset value was 671 cents. 

INVESTMENT PORTFOLIO 

A further 1,600 shares in Winkelhaak Mines Ltd. and 
15,000 shares in Rooiberg Tin Ltd. have been acquired and the 
company’s remaining holding of 98,000 shares in Zaaiplaats 
Tin Mining Company Ltd. has been sold. 

NOTES: 

(1) The net asset value for the half-year has been calculated 
before payment of the interim dividend. 

(2) No', provision, for possible losses on future realisations 
of investments has been included In the results, as any 
necessary adjustment is made at the year-end. 

(3) It'should not be assumed that the results for the first six 
months of the. financial year will be repeated in the 
remaining six months,' because — 

• (a) income from investments does not accrue evenly 
throughout the year, and 

(b) the realisation of investments fluctuates in accordance 
with policy decisions and market conditions. 

For and on behalf of ihe Board. 

B.J. JACKSON, Directors 
M. D. HENSON \ 


DIVIDEND NO. 19 

An interim dividend of 15 cents per share has been 
declared for the six months ended 31st December, 19S1. 

Last date for registration 12lh February, 19S2 

Registers close (dates inclusive) from 13th February, 1982 
' to 20th February, 1982 

Currency conversion date 

(for payments from London) 1st March, 1982 

Date of Payment 12th March, 1982 

The- dividend is payable subject to the customary 
conditions which may be inspected at or obtained from 
the company’s Johannesburg office or from the office of 
the London Secretaries (Barnato Brothers Limited, 99, 
Bishopsgate, London EC2M 3XE). 

Bv order of the Board 
JOHANNESBURG CONSOLIDATED INVESTMENT 

COMPANY, LIMITED 
Secretaries 
per: D. J. BARPlETT 

Head Office and Registered Office: ■ 

Consolidated Building, 

Comer Fox and Harrison Streets, 

Johannesburg. 2001. 

(P-O. Box 590, Johannesburg. 2000). 19th January, 19S2. 


This announcement appears as a matter of record only 


Tradinvest Purchasing Company Limited, Bermuda 

£150,000,000 

Acceptance Credit Facility 

guaranteed by 

Snain S.p.A. 


managed by 


S. G. Warburg & Co. Ltd. 

Allied Irish Investment Bank Limited 


Banque de ITndochine et de Suez Bare 

(London Branch) 

Commerzbank Aktiengesellschaft 

(London Branch) 

Societe Cenerale * . Stands 

(London Branch) 

The Sumitomo Bank, Limited 


Soditic International S. A. 
Amsterdam-Rotterdam Bank N.V. 

(London Branch) 

Barclays Merchant Bank Limited 


The Sanwa Bank, Limited 
Standard Chartered Bank Limited 


provided by 


The Sumitomo Bank, Limited 

The Sanwa Bank, Limited 

Allied Irish Investment Bank Limited 

Barclays Bank Group 

Central Trustee Savings Bank Ltd. 

wmiams & Glyn’s Bank Limited 

The Yasuda Trust and Banking Company 
Limited 

Bank fur Gemeinwirtschaft Aktiengesellschaft 
Banqne de Paris et des Pays-Bas 

(London Branch) 

Credit Industrie! et Commercial 

(London Branch) . 

Gxindlays Bank Limited 

The Hokkaido Takushoku Bank, Limited 

Swiss Bank Corporation. 


Commerzbank AkizengeseHschaft 

(London Branch) 

Standard Chartered Bank Limited 
Amsterdam-Rotterdam Bank 2T.V. 

(London Branch) 

Banque de l’lndochine et de Suez 

(London Branch) 

The Mitsui Trust and Banking Company Limited 

- Societe Gen£rale 

(London Branch) 

Australia and New Zealand Banking Group 
Limited 

Bank of New Zealand 
The Chuo Trust and Banking Company Limited 
Gray Dawes Bank Limited 
Guinness Mahon & Co. Limited 
The Mitsubishi Trust and Banking Corporation. 

S. G. Warburg & Co. Ltd. 


AgsntSank 

S. G. Warburg & Co. Ltd. 


December 288 Z 









Coopanies aid Markets 


• / ; : i: financial 3^mes 

INTERNATIONAL COMPANIES an <1 : FINANCE 


Swiss pharmaceutical groups strengthen their positio 


By John Wicks in Zurich 



SWISS CHEMICAL companies 
are feeling justifiably pleased 
with the way their pharma* 
ceutlcal business grew last year. 
In the first half of 1981. the Big 
Three producers — Hoffmann-La 
Roche, Ciba-Geigy and Sandoz— 
booked sales growth in this 
sector of between 19 and 25 per 
cent Hopes that demand would 
keep up during the remainder 
of the year seem to have 
materialised; in the January- 
October period total Swiss phar- 
maceutical exports were nearly 
16 per cent higher than for the 
same 10 months of 19S0. 

The sharp rise In the Swiss 
franc exchange rate recently, 
of course, means that the 
rise in' turnover will have been, 
less marked for the second half 
of 1981. Export markets take 
all but a small share of 
domestically-produced pharma- 
ceuticals, while the sales of 
foreign subsidiaries are natur- 
ally expressed in Swiss francs 
in group statistics. 

Despite this, pharmaceutical 
sales appear to bave developed 
well in 1981. This fact is of 
considerable importance to the 
Swiss chemical industry, a good 
40 per cent of whose substantial 
output is accounted for by phar- 
maceutical products. 

Of the Basle-based companies, 
Sandoz had a pharmaceutical 
share in consolidated turnover 
of 45.6 per cent in the first 


LEADING SWISS PRODUCERS 

.1980 lw 

Turnover In SwFi* m 

(Pharmaceutical dhrhion) V 13 2,729 

Hoffman n-La Roche . 

(Pharmaceutical division) 2^00 awj 

Sandoz , . 

(Pharmaceutical division) 2^84 2,145 

Zyma* 

• Majority of sturms held by Ciba-Geigy. 


half of 1981, which it feels might 
have increased to over 5Q per 
cent for the year as a whole. 
Hoffmann-La Roche’s pharma- 
ceutical share has been falling 
in recent years but seems to 
have stabilised at around 44 per 
cent of group sales, even ex- 
cluding the allied sector of vita- 
mins and fine chemicals. At 
Ciba-Geigy, the pharmaceuticals 
division accounted for a good 
28 per cent last year, compared 
with only 17-18 per cent in 
calendar 1979 and 1980. 

Apart from the above-average 
growth of pharmaceutical sales 
within the Swiss chemical in- 
dustry, exports of pharma- 
ceuticals from Switzerland last 
year rose much faster than 
those of competitor countries. 
This was admittedly aided by 
the relative weakness of the 


Swiss franc during the first 
eight months of 1981, but it does 
appear that the Basle com- 
panies were able to strengthen 
their already important posi- 
tion on world markets. At the 
same time, everything points to 
a healthy increase in the local 
sales of the Swiss companies' 
foreign, manufacturing subsi- 
diaries. 

For ail this, profits from the 
pharmaceutical sector ‘ are 
lagging far behind the growth 
in sales. Pills and medicines are 
proving less and less of a gold 
mine. Despite the increase in 
turnover, spokesman Dr Karl 
Bucher said at last autumn's 
Press day of the Swiss Society 
of Chemical Industries, few 
pharmaceutical firms were feel- 
ing particularly optimistic 
about, their earnings prospects. 

The. cost of developing, pro- 


ducing and marketing prescrip- 
tion pharmaceuticals is high 
and rising fast Research and 
development activities are par- 
ticulariy expensive. The Basle 
producers, which earmark some 
15 per cent of their pharmaceu- 
tical turnover for R & D use, 
reckon to spend anything up 
to SwFr 100m (856m) on the 
introduction of a new speciality, 
which today could take 10. or 
12 years to reach the market. 

There are no short cuts in 
research. On average. 10,000 to 
15,000 substances have to be 
synthesised or extracted before 
a single new pharmaceutical is 
developed. With one-third of 
tiie chemical industry’s payroll 
made up of university or college 
graduates in Switzerland, labour 
costs alone are huge—- especially 
with Swiss inflation at a six-year 
high. 

With raw material, energy 
and capital costs also running 
high, the Swiss companies . are 
busy looking for ways to save 
money. Early last year. Roche 
scrapped 90 jobs in its Basle 
research division and decided 
to close its Research Institute 
of Marine Pharmacology in 
Australia, while in August 
Sandoz announced an 11 per 
cent cutback in total parent 
company personnel over two 
years. 

This does not mean that the 
Basle companies are about to 
become mere figure-heads with- 


in their Increasingy multi- 
national; concerns. Switzerland 
is still considered one of the 
few really desirable locations 
for both research and sophisti- 
cated production facilities: At 
the same time, though, future 
expansion here* as in .other 
brandies of the chemical 
industry, is likely to take place 
abroad rather than at home* 
This makes sense in view of 
the rising Swiss franc and also 
because of the chronic lack of 
manpower in Switzerland 
itself. - 

Whatever die case, there is 
little chance of offsetting 
rapidly increasing development 
and manuf actariug costs by put- 
ting up sales prices. Not least 
because of growing .cost pres- 
sure on die world’s social 
security services, pharma^ 
ceuticai prices are subject to 
a considerable degree of official 
control- Either through direct 
price restraint measures or in- 
directly by the encouragement 
of cheap replacement products, 
governments are making it hard 
if not impossible to pass on 
higher costs to the market.’ 

In (the first 10 months of ‘ 
1981, the i average price of 
pharmaceuticals exported from 
Switzerland -was up by only 2.9 
per cent on the corresponding 
period of last year. On 4be 
home market, where imports 
are growing fast inflation has 
risen three times as fast as 




. : * 

- • 


■ • : 'y, v -■ ' . • 

.’V-- 




The growing costs of development; researcher at •_ l^btwatoiy 


pharmaceutical prices in tile- 
past four years. The recent 
jump in the exchange rate wall 
make it very difficult to put up 
Swiss franc prices in the near- 
future. * 

Switzerland's chemical com- 
panies must, regardless of cost, 
keep up their high level of 
Innovation -in pharmaceutical 
production. Pressure on prices 


Lloyds Bank 


international banking 




Major corporations 
expect a superior 
banking service. ' 

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In an unsettled world we know there are business 
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We are as reliable in handling trade finance as 
when assembling finance for the biggest of 
multinational projects. We are as much at home 
in our domestic markets overseas as in the 
international capital and money markets. 

We operate in depth across five continents and 




J conduct business in Over 
a hundred countries. Yet 
our management remains a 
close-knit team of 
professionals; and we are 
structured expressly to enable 
BI M them to communicate freely across 
the globe and to our top decision makers. 

It’s because we are integrated that wherever you 
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A fresh approach to international banking 

LloydsBank 
International 





. and the erosion of patent pro-: 
tection -m ean that, fewer Hems 
wHl remain major ' money 
spinners over a long, period of. 
time. In 1980 and- apparently 
•last year,.. too, new products 
have made an important -contxi- . 
- button to rising turnover. ; AM 
research -based manufacturers, 
-whether ' "tee Big Th ree or 
smaller companies like Zyma or 
Siegfried, have interesting addi- 
tions to their sales programme 
in file pipeline — including such 
important u - developments as 
Roche’s ptoneer work in. the 
field of interferon processing 
or Cfba-Geigy's systems pf trans- 
dermal dosing. 

All producers are wen aware 
of the increasing difficulties 
involved in registering so-called 
ethical pharmaceuticals — : and 
the dangers to which products 
can be -exposed after- registra- 
tion. A case in point is the 
“ Stnon ” -affair in Japan, where 
Ciba-Grigypaad some ! SwFr800m 
(8169m) in compensation, even 
though it never laccepted the 
contention -that its anti- 
diarrhoea agent- Mex? form was 
a proves cause of the tBsease. 
Now VaHmw. fixe product which 
long accounted for; a 
share of total Roche profits, is 


to be investigated by file W«A& > 
Health Orgamsatimr ^ , 

charges ; {albeit - 

by fixe UH. Rood and Dote 
A dministration) (that Stoatffed 
to. addiction, !-.T 

‘ .Whatever tee ,xase* ■■ $*$«; •.»- 
- pharmaceutical producers are 
sow be^nnSog’. to huSd. up“l i 
position outside teei^srascifipt. .-y 
■tiori sector. Interesting- deraEop* - 1 
meats wlhSrih could Wi ‘ — ^ 
scene for file future jj 




proprietary = laxative ; Bps by 
Sandoz, . or - file position, taken 
" t& boar cab 


base: lending ^ ^ 

- AJB.N. Bank * . J4i% \ ; Grindlays 

Allied Irish Bank I4*% « SutanefisMeha^^^ 14i% 
American Express Bk.l4*% .* Hambros Bank ;. ..... .. 144% 

Amro Bank 144-% . . Heritable Sc Gen. Trust -.14k% 

Henry Ansbacher. k.„. 14* % *HUI Samuel : §144% 

Arbuthnot Latham ..... 144% C. Hoare Jc Co,. ....-.,.tl44% 
-Associates Cap. Corp. 15 _%. J ■ Hongkong.fcShm^:ai I 4*% 
Banco de Bilbao ...... 14i% - \Cn Ltd:,...^* 

Bank Hapoalim B2I ... 14*% -MalllnhaU limited 144% 

Bank Leumi (UK) pic 14*% Edwmd l Hanson m% 

Bank of Cyprus 14J% -Midland Bank i.144'% 


xtouvu ue ouusu • — j' r, , ' — 

BCCT -144% •* Lloyds Bank _ —144%' 

Bank Hapoallm BM ... 14*% .MalllnhaU limited 144% . 

Bank Leumi (UK) pic 14*% >; Edwmd l Hanson m% 

Bank of Cyprus 14*% - Midland Bank kI44% 

Bank Street Sec. Ltd. 16 % ■ Samuel Montagu >. — . 144% 


’ Bank of N.S,W. ...1 144%' 

Bamjue Beige Ltd. ... 144% 

. Banque du Rhone et-de 

la Tamise SA. 15 % 

Barclays Bank' ......... 14*% 

Beneficial Trust Ltd.... 15J% 

B re mar Holdings Ltd. 15|% 
Bristol & West Invest 16 % 
Brit. Bank of Mid. East 144% 

■ Brown Shipley ... 15 % 

Canada Perm’t Trust.. 15 % 
Cavendish G’ly Tst Ltd. 15* %■ 
Calmer Ltd 15 % 

' Cedar Holdings 15 % 
g Charterhouse Japhet.. 15 % 

■ Choulaitons 15 % 

’• Citibank Springs .......315 %- 

Clydesdale Bank 1 144% 


iMorgan GrenfeU ^„J-.l4i%; 
National .Westminster 144% 
' Norwwh Cenera? -Triist 14 4% 
P.'S. RefSon & CoY r ;.. 14f% 
Roxburghe Guarantee ^15 % 

E: $.. Schwab 144% 

Slavenburg’s Bank ... 144% 

' Standard Chartered ...1|144% 
Trade Dev. Bank-....- 144% 
Trustee Savings- Bank 144% 
TCB Ltd. .. 14f% 
United Batik of Kuwait 14*% 
Whiteaway Laidlaw ... 15 % 
Williams Sc Glyn’s ....144% 
Win trust Secs.- Ltd. ... 144% 
'Yorkshire Bank . 144 % 

I Member* bf th#. Accepting HoimR 
Comniutae.' V ■ <r - - 


C E. Coates. ...... IS m, m . (tepovlt*. ! HZSbt:. l-meafl^ 

Consolidated ‘Credits!!! 144% . \sw£ 

gjsssgsi“'- 'jiig 

Connthian Secs. ......... 144% end under 12F»!S. lip to . £50.000 

The Cyprus Popular Bk, 144% 13 % wd «jver £so.ooo i3»i% r ? T; 

Duncan Lawrie 144% .* c«i» depoeia &.000 iad. <mt 

Eagil Trust. — 14*% - r:M 


E.T. Trust ' '.. 144% 5 Demand deposit* 

First Nat Fin. Corp 17 % B 21-dsy deposits over £ 1.000 t3V5C- 

First ^at Secs. Ltd. ... 17 % t Mortage few .rate. . 


To the Holders of 

Williams & Glyn’s Bank Timifw? 

■ HoatingRateCqptalNoteal984 : . : X'.y'-X . 

On liehalf of "Williams £ Glyn’s Banlc Inniite^, irotJce ' 
is hereby given that, in accordance with the terms of L 
condition 7 (c) of the Trust Deed dated 22nd Pebruai^; 
1977, all of the outstanding ■notes wiU.l>e xedeem^lat - 
their principal amount, together -with interest accrued, 
on the next designated interest payment 'date, wKefcnf 
February 26, 1982; From and after stxcfe. interest -pa^! 
ment date interest in respartiiiereofwiU cease to a^ 
and all mmzatured coupons appertaining thereto 
become void. Payments of principal and: inteiest w 
made against surrender of notes 'and coupons at 
specified office of any of the Paying -Agents. . - ‘-b- 

This notice is published on behaK of Wi!liains & €35^* 
Bank Limited by the ' ' ' ' ' ' 

ance with the terms 
Agency Agreement 


L* 1 W* ■■ T T ' v /, * »' -W ‘ *'3 

| mb a V \ « > ij 1 i 


Ja2maiy20.,1982 


if? 


> 1 ‘ t IT T ' 1 


The Association of lnteraatioual B^DesSers'^ 
Yields appears monthly io tee PSnatic^-Tan^ 
It will be published on the ^ 

** • * • . 

Monday l5th February ■!-.' 

Thursday ISthMard*. 

Thursday ISth April 
Wednesday 32th May . 

Wednesday-16 th June 
Tuesday 13th Ju^y : . 

There is a limited .amount Of : 
mouth, te.ybur <mmpatiyl&i 
this oKer please contact < 

The Ttoaadal 

m 01-248 buw . 


fi 







20 1982 

CURRENCIES; MONEY and GOLD 


APPOINTMENTS 



THE POUND SPOT AND FORWARD 


- Owed art' <»agirt y» ^rijn fl 


Central banks cqntara«4 to. intBr^ 

vene r,to ' push ' 

currency, jaafiakr^ate- 

' SMB*? MontJa^ * Jts^dSy 
tren& TO* undtwwS^^S 
raMft Va*Bfefc: C*HK^ikV/1X&' 
' i^wa* JR" "DeCToAeT 

ifcari NoyefifterJ but ISs^aollar' 
gained «*mer s^poz-f'fNsii ■ the 
Aim . iMtf 

- irt f 

‘ ^teiiblg’: :t «v*SsV, S^m/ ' geinliig 

sroond Agiisst tejtior'otareacieff, 
amid bop^j, that U^miters witi 

n <* YX#*' rib' '.fewooc of strike 
: ; acfiQB.-^ siyf-.j . r; • .- ..- . 

J^Mn^^-TweaRest BHaSterSf 
m^ S«iT»iR«^jManetary Systran. 
5&^~,JMnarfc 'and;. 1 lira- finisbed" as 
^ecand^weaisst, -w&ile tie 
gu&ira’ Yfras. agate -afc. the tap. of 
1he;B3rrtran; > ; •. j;;, ' : r-/-: . •.; 

ta^ XBaiiH of Ei^aant!) fen to 
108*? Jinan 109 ;i : on Ubb&u- ioid 
mi^ ^^nouta& ^gR/ - Hire* 

cent (14^ .per;cesttt st^.mobths 
-ago)/ AiaauH inflaHosT rate 9.6 
P er?«aii Cltt2 pw<enf ' previous 
'Ttel&toat . fen -to 
DM 2J2950 ftp® . DJ£ . 22SS5 
against . tee 7 ‘ Draark; to 
SwFr 15475 front -SwFr 15490 
against .tSie. Swiss franc; and to 
-722459 from Y225.4& in terms of 
the yen; bmro&oto FFr 5.8440 
from FFr 55360 neatest - tie 
French franc. :. ,.- : ;i' 

STERWNfi — Trade-weighted 
Index 9L5 against 91.4 at noon, ■ 
9&2 in the mornbig and 905 at 
the. -prevlmis-? dose (925 six 
; mouths ago).Three-month Inter- 
hank 15} per cent (14* per cent 
six month* -ago). Annual infla- 
tion 12 ‘ per . emit (unchanged 
from ■ previous month)-^terling 
opened -at'. 815900, and touched 
a lov? of $15875-15885 in early 
trading.' It tose, to a .peak of 
$15990-1.9000 -in - the morning, 
hot that moved within a narrow 
range of around. $15930-18950, 
before- dosing at $18945-15955, 

. a Tits, of. 120 .cents on the day. 
Tim pound also improved in the 


' VJ^ward market,, with the dollar 

-■SSr^® 1° a di *cpimi • against 

• : «ening. for six-month and 12 - 

delivery. Sterlhig rose 

4.35 from DM 433; to 

L’S^^rEX from FFt 10-®^ to 
r v SwFr 3.5050 from SwFr 3,4325; 

. and to Y425.50 from Y424J50., 

P"MABK ~ EMS • member 
(second. weakest). Trade- 

• weighted Index 122.0 against 
-1:121.8 <m Monday; and U6.0 six 
;: pwmtfas ago. Three-mouth inter- 

. hank 10.475 per cent (12525 per 
cent,' six months ago); ', Annual 
. inflation 6.3 per cent '(&0 per 
‘ p reviona ’ month)'-- The 

v D-mark. gained ground againsi 
:. hvo- mfirobers of the Eat5 ; at the 
Frankfurt fixing, wasimekanged. 
.against . • and weakened ' 

against the. sadae immbejr. lt also 
unproved against!-' the/; Swiss 1 
’ franc, bat feU against. sterling, 
which was fixed at DM 4.3310. 
compared -with DM -45140. The 
Bundesbank sold $52.l5m when 
~ th e doHarwas fixed at DM 22872, 

; down from DBi 213070 m BJon- 
i day. -'Jn the afternoon ■ the U5. 

' currency- raflietf to. DM' 2.29 on 
speculation of a possible cut in - 
the Bundesbank speclat Ltknbard 
rate from lpi per cent this week. 

ITALIAN LIRA— EMS ^ mem- 
ber (third weakest). Trade- 
weighted index 55.4 against '555 
> on Shmday, and 575 six mimths 
agio. Three-month . interbank 
21* per- cent. (28$ per cent six 
months ago).- Annual inflation 
175 per cent (18-2 per cent pre- 
vious month) — The lira rose 
. against two members of the EMS 
at the Milur-fixing, and declined 
against four. It improved 
against the dollar, which fell to 
11225.06 from Ll.235.55. 

JAPANESE YEN — Trade- 
weighted Index 142.9, unchanged 
from Monday, and 1395 six 
months ago. Three-mouth bills 
6.59375 per cent (7.46875 per 
cent six months ago). Annual 
tnfiatkm 3.6 per cent (4.1 per 
cent previous month)— The yen 
improved against the dollar in 
featureless. Tokyo trading. The 
U.S. currency eased to Y2 24.50 
from Y22655, 


Day’s 

Jan 19 spread 

tES! 1X875-1330 
Canada .2X540-2388 
Naihlnfi). 4.33V4.77** 
Belgium 7330-74.15 
Danmark 14.12-14X2 


1X875-13300 1.8945-1.8955 
2.2S4O-Z.2680 2jan6-2J£7& 
4.73V4.77** 4.75-4.37 

7LB0-74.15 74.00-74.10 


0.25-0-lSc pm 
O.IOc pm-par 
IV-lVc pm 
30-SDc dia 


Ireland- 1 .2220-T.2320 1.2290-1.2310 
W. Gar 4.32-4^5 4X4V«J35>7 

. Portugal 125X5-128.25 125.00-122^0 


-MXOVMXIb 2V-1%orepm 


Spain 

Italy 

Norway 

Franca 

Swadan 

Japan 

A asms 

Swrtr. 


DX5-0.37p din 
2-1*<pf pm 
30-180C die 


185^5-186.25 185.85-188.15 TO-20c dis 


Three 
p.s. months 

1 .27 0.2a!ai8 pm 
0.28 0.1E-0-30dls - 
4.09 4^r4\ pm 
-«.«B 10S-12S dia - 
1.79 4VZbpm 
-3.02 0X9-1. 16dia - 
4.B3 5-4S pm 
-B.OS 12CM00dla - 
-0.97 50-80 dis 


2J1 8-2.324 2^20^X322*1 13V15*a lira rfi* -7.75 45-50 dis 

y 11.03-11.12 11.11-11.12 2VlVarapm 2.1B 9,4 pm 

r 11.00-11.08 n.OftVIT-OTV rp-irpc dis -0.95 3‘H 1 : dis - 

in 10.80-10.86 10.B4V10.S53t 2V1 Vore pm IS pm 

422-427 425-428 3.3O-3.00y pm 8.88 8.60-8.30 pm 

I 30.25-30.45 30.40-30.45 18-llgro pm S J2 41-31 Pm 

3.47V3.S1 1 ! 3.G0-X51 2V-1 Vs pm 6A2 SS-6 pm 

Belgian rare for convsnlMa francs. Financial Irene 83.60-23 70. 
Six-month forward dollar 0.05c 'pm-O.OSc dis, 12-month 0.05-0. 25c dis. 


THE DOLLAR SPOT AND FORWARD 


T/Xf 1.8875-1 MOO 1^945-1.8355 0.25-0. 15c pm 

Ireland! 1 .5415-1 J5410 1.5450-1.5470 0.6O-O.5OC pm 

-Canada 1.1935-1.1846 1.1835-1.1940 0.08-0.12c dis 

Nothlnd. 2 .5025 -2.5100 2^080-2-5090 0.70-0. 60c pm 


Belgium 


2S-30c di s 


Danmark 7.4610-7.4825 7J1770-7A800 030-0.05or« pm 


W. Gar. 

Portugal 

Spain 

Italy 

Norway 

Franco 

Sweden 

Japan 

Austria 

Switz. 


2.2800-2.2960 2J945-2.2965 0.70-0.6Spf pm 

66^0-68.60 66.30-88 JO 25-90e dia 

S8.05-98J& 98.10-98.15 20-30C dis 

1 .223-1.228 1^27-1.228 8*«-9>. Ifaa dia 

5 X310-5JS50 5.8560-5.8610 0 J0-0.50ora pm 

5JQ20JJ46& 5J415-5J485 0 J0-1.05c dis 
5. 6050-5. 0220 5.8190-5.8220 0.60-0.40ora pm 

223.75-224 .7S 224 .45-224-56 1.E5-1.40y pm 


n 2Z3.75-224.75 224.45-224-56 1.E5-1.40ypm 7.88 435-4.20 pm 

rid f8.QO-16.07 . 16.03V16.04** 6>r6Vgn> pm 4.39 16 VI 5 S pm 

z. 7.8330-1.8500 1.8470-1 .8480 0.96-0. 88c pm 5J1 2.61-2.51 pm 

t UK and Ireland are quoted in U.S. currency. Forward premiums and" 
discounts apply u> tha U.S. dollar and not to the individual currency. 


p.a. months p.s. 

1J7~0.28-0.TB pm 0.48 
4.27 1. BO-1.46 pm 3.94 
“1.05 0.26-0. 29d is “0.92 
3.11 2.2S-2.15 pm 3.51 
“8.47 67-72 dis -7.14 
0.28 0.40pm-0.10d 0.08 
3.53 Z30-2.25 pm 3.96 
-10.39 75-220 dia -B.8B 
-3.06 60-65 dis -2.34 
—8.57 25-27 di* -8.43 
1.43 1.30-0.80 pm 0.75 
-2.01 2-80-3. lOd is - 2.03 
1.07 2.90-2.65 pm 1.97 
7.88 4.35-4.20 pm 7.B2 
4.39 18V15Spm 4.24 
5.31 Z61-X51 pm 5.54 


CURRENCY MOVEMEN TS CURRENCY RATES 

Sank of ( Morgith i Santo Special ; Euro pa an 

Jan. IB England Guaranty Jan. IB 1 rata Drawing Currency 
Index Chang o*7. , X Riahts Unit 


Starling — 

UA. dollar. 

Canadian dollar.... 
Austrian schilling. 


Danish kroner.. 

Deutsche mark 


Bankof 

England 

Indax 

Morgith 

Guaranty 

ChangoaV 

01.5 

—32.5 

ioa.7 

-1-2.0 

88.5 

-16.6 

iie.a 

+24.B 

104.6 

+ 7 A 

86,8 

—10.8 

1B2A 

+43.5 

152.5 

+ 104.0 

114.6 

+ 10.7 

802 

-15.1 

55.4 

-57.5 

142.9 

+ 37J 


Franoh franc , 

Lira ■ 


Bawd on trade weighted dtutgaa tram 
Washington agraetnant Dacatnbor, 1871. 
Bank or England lodax {base average 
1876 =>100). 


OTHER CURRENCfES 


Starling ^—1 — | 

UJh 8 1 12 ; 

Canadian S.,14.91 
Austria Sch. GV 
Belgian F... J 14 ! 
Danish Kr^., 11 [ 

D mark. J 7iy 

GulId«r.—...[ 9 > 
French Fr....i B** 

Ura„. 19 : 

Yen — — . ! Gi«' 

Norwgru Kr.' 9 I 
Spanish Pt*., 8 : 
Swedish Kr. 11 


0.614797 

1.14967 

1.37420 

18.5821 

48^280 

8.68001 

2.65229 

2.90637 

6.74684 

1420.42 

260.289 

6.76236 

114.047 

6.90598 

2.13402 


Qraak Dr’ch. 20 i s - 


17.1253 
41.6468 
7.97807 
2.44336 
2.67646 
6.20998 
1 1307.28 
j 238.284 
6^1263 
104.963 
5A7B09 
1.98383 
62.6024 


ENiS EUROPEAN CURRENCY UNIT RATES 




SalgJanFfanc... 

. Mhaii Kmnar... 
Gaihun ; D-Mark: 
French franc V 
Dutch Guilder ... 
rrish Pdnt 
WHmA Lh» - 


- ECO 
control, 
ratna _ 

amounta 
against ECU 
Unitary 19 . 

front 

central 

rate 

% dungs . 
ad lasted for 
dfmrQsnca 

Dhrargenca 
limit % 

40.7572 . 

41.6463 

+2.18 

+1M 

“±1JMB 

' 7AT117 , 

' 7.383C1 • 

+0.91 

-0.08 

±1.8412 

2.40989 v 

: 2*44480 

+1.44 

+0.47 

±1-1877 

8.17443- 

6.21755 

+0.70 

.— A27 

±1.3733 

2,86382 

2187703 

+0.E0 

-0.47 ' 

±1.5063 

0.684452 

0.882372 : 

+1.18 

+0.19 

±1.8888 

. : 1300-67 -J 

1308.13 

+0.65 

+0.47 

±4.1229 


Argentina Peso._18.703- 18, 723tl 9,850^,9001 
Australia Dollar .7010 -1.7030 0.8970-0.8975 
Brazil Cruzeiro.. 1249.43 -250.43 131.56-132.22 j 
Finland Markka^ 8L329-8^43 14,3950-4^970 ; 

Greek DrochmaJl08.27Vlll.58S; 58.45-58.65 j 

r% Hong KdngDoMar.l 1.004-11.034 5.81-6.82 

— Iran Mai I 149.40* ! 80.00* I 

Kuwait DlnariKDH 0.534-0A40 <0^831-0.2833; 
Luxembourg FrJ 74.0a74.10 , 39.09-39.11 > 
Malaysia Dollar... 4 JI890-4J790 i 2X540 -2J2S90 • 
New Zealand Dlr.'2.3299-2.3316 1 1^275-1^286 
Saudi Arab. Rlyall 6.45-6.91 ; 5.4195-3.42 15 , 


Changas are tor cUir..tnereiora positive ensnge amunee a 
' weak currency-' Adiaatment calculated . by Financial 71(1)48. 
«■', SrartinB /ECUretafarJanuary 19 038420 

EXCHANGE CROSS RATES 


Singapore Dollar. 3 .8975-3. 90 75 1 2.0580X.0610 
8th. African Rand! 1.8295-1 A3 15 0.965541.9665 
U.A.E. Dirham ! 6.93-6.99 ! 3.6105-3.6725 


AM«trl» 

Belgium ......... 

Denmark....^. 

France 

Germany- 

Italy 

Japan 

Netherlands... 

Norway 

Portugal 

Spain 

Sweden- 

Switzerland _ 
United States. 
Yugoslavia^-, 


i Note Rates 

I 30.15-30.45 
_ 82^6-83JZ5 
_ 14.08-14.20 
_l 10.97-11.07 
..< 431A.35 

2390-2440 
.. 425-430 

4.78S»-4.755» 

_! u.oaii.io 

.. 1 124-133 

! 18434-194 tj 
_i 10.56-10.66 
..I 3.4711-3.51 ȣ 
-| l.B8it-1.90ia 
87-94 


f Now one rata. * Selling rata. 

Jan. 18 Malaysia Doilar/Stariing 4-2390-4.2490 


Pound Sterling 
jujs. Dollar 

peotscfienrerk 
Japanes e- Yen ^jpOO 

FrtuicfifranciO 

Swtos Frano- 

Dutch .Cidkier - 
t taHahUW). 1,800 _ 

Canatton Do! lar 
BetfllartRmno 1BCT. . 


:i, •• 

aoaff 


l| Krnnch Franc A 
1 11.075 

win Franc C 
3.505 ■" 

4.765 

ttallanLlm C 
2322. 

■nadla Dollar. A 
2JI62 f 

algtan Frank 
74.05 

j 5.843 

1.B50 

2.515 

1225. 

1.194 1 

39.00 


0.210 l 

0.431 | 


0.398 I 
0.816 ‘ i 


FT LONDON INTERBANK FIXING (11.00 a.m. JANUARY 19) 


3 months OA dollars 


bid 141119 offer 141|1B 


B months U-S. dollars 


bid 14 nm ! offer lfi 1118 


The fixing rates ere the arithmetic means, rounded to the nearest one- 
sbetaenth, of the bid and offered rates for SlOni quoted by the market to five 
reference bunks at 11 nm each working day. The banka ere National W estmins ter 
Bank. Bank of Tokyo, Deutsche Bank. Banqua Nationals da Paris and Morgan 
Guaranty Trust. ' 


(EURO-CURRENCY INTEREST RATES (Market closing Rates) 


Staffing I UA Dollar 


.Shortterm j, IJsa-***! 

i -7 days' notiee * .. 

►Month; — : 

J Three months lb- J Oja 

I stx isonths..._.._ 

« One Year— 1 1SU 


13-13U 

13 <8-1338 

13Sa-13BB 
1418-1438 
14^- 1M 
15 U- 1512 


Oenadlan l | |We*t German 

Dollar 'Dutch Guildan Swiss F rano ; Mark 

13-14 ' 10*4 -108b < 

15-14 ' lOsa-lOi* j 3*a-3*» I 9*4-97 b 

14*s-14Ta I IO*«-10S« 8A-B4 ! JOrjrJOA . 

1538-153* I • lOia-lOSa • f 10r*-lDr* 

18 la- 16 *2 JOSfl-lOS* i 859-83* 3018-30** 

1838-16** I lOVlDIg I Srk-SA I01fl-iq**_ 


! French Franc Italian Lira 


1478-1548 

1478-1536 

15-15*2 

16 16*t 
. 17-17*1 
18-18*3 


2025 
22 *s-25 >a 
2114-221* 
22ts-23*g 

2353-341* 

Z4-24T a 


Belgian Frano 
Convertible Japanese Yen 

143«-1?S« SSo-STi 

1578-1973 6-6<« 

19ig-2D4e 6>*-63a 

20*9-211? 6^6 nc 

20 la-31*? 63*-67 8 

1813-19*; BWAri 


- Anran T (downg.-rUH in Singepore): one month, 13V13H par cent; three months IM^pv «"« »« fI,an ^ L“ r *T cent 

tvm vears 16V1B*e per oenti three years 15V1B per cent: four ye»ra 15^-16 per cent; five years 15V 16*, par rent nommil closing ratal. 
ratS^raST qyS for LcrXTdollar certificates of deposit one month 13.20-13^0 per cenc three month* 1365-13^ per cam: era months 
J 14.00-14,70 per oenq one year 1S-1B-<15i35. ‘ 

j w - eni n metal was fixed at S377^5 in the 

i MONEY MARKETS . morning and 5375.25 in die 

-”Z_ ' • Sli ght the 12t kilo gold bar 

Rates ease again ris r 

^ . .... .... A 1 JV/ FFrTOJKO (S376.15) in themora- 

Loodon clearing bank base of elig^te bank biUs in band 1 GoW rose 53 n 537^376 in the in& and FFr 70^00 (S3 73. 65) 

Iraidlng ntes 14i per cent - (up to 14 d^) at ]gr LoQdon bullion market. It Mondaj- afternoon. 

(since' December 4) cent opened at S375J-S76*. and In Luxembourg the 12? Jolo 


London clearing bank base of eligit 

lending rates 14i per cent (up toj 

(sluee' December 4) cent mc 

: Short tetm ; ratei continued Uo ™ 

ease, hi .linflon. yeaterdgy a^ter biUs at 

a iitttheE xednetron m Bankof band 3 
En^and; dealing : T ^ e £ 49 m of 

authorities bought bifis to 14 * 
altemato-Afr shortage of luudf 91 days) 
down to 14i 1 per cent m all four 14 ^ ^ 
bands, zoaMng a A per cent -jjgjftig 
rednetzon- in bands 1 and 2. and cent 
i- per cent in 3 and t Three- 
month '.: interbank money was ■___ 


of eligible bank bills in band 1 
(up to 14 days) at 14H4A per 
cent and In band 2 (15-33 days) 
£5m of Treasury -bills at 14$ per 
cent and £l63m of eligible banks 
bills at 144-14ft per cent. In 
■band 3 (34-83 days) it bought 
£49m of eligible bank bills at 141- 
14f per cent and in band 4 (64- 
91 days) £5m of Treasury bills at 
14A per cent and £28m of 
eligible bank bills -at 14J-14 A 


GOLD 

Slight 

rise 


London 

opened 


bullion market. It 
at S375f876i. and 


touched a peak of SS79480. but gold bar was fixed at the equiva- 
seemed to find resistance at this lent of S377fl0, against S36&25 

1 , bill.. fliB A*%vr m r- Inu- •at nil Unnrisr 


level falling to the day's low at 
close, reflecting an easier open- 


on Monday. 

In Zurich 


finished 


cn»e, reuctuu* a** WIICI VI-- nrT r 

ing to U.S. futures trading. The S374-37, compared with S372-375. 


f an** During the afternoon the Bank nra?*L378 fciB7i*-i98i 3372-375 

monte-.: teterbank money was additional help of £93m, res7B tgJ7Bi« f£i98s*-i99*4j!t366iv-367*« 

crooted at 15-15i per cent down making a grand total of £383m- Arah^fbdug. *=n-SS HISS'S??. 

from . ISA-151 P®r cent while ^, e aftemoon help comprised Aft*n*«*»i fixiiig.S375j25 <£197JB12) *373.75 

IhrBMiMmtii sterling GDswwe purchases of £14m of Treasury # 

lower at 16 per cent .contpareo hUis in band 1 and £$m of eligible „ , 


Oolk Balflaa tflire ounc«l 


8369.75 

*373.75 


lower at 16 per cei 

vote 15* per cent . overmgnt at i*y per cent In band 3 BSKSSnmEi *i98vi99ii usio^-igsiJi : sibb-im 
- money opened at 14i-14t pw ^ band 2 £Hm of Treasury bflSs wKrag«rraNd_i koi-im jSfi* *a?u32* 

■ andnsased in stages ; down to ^ and £28m of local authority bUhs k™??"*™ 1 ! gifcS* 14 • Sms-sot 


Overnight 


PU1 UUWW tor* ■ ** ■ — - * * 

bills in band 1 and £8m of eligible 
bills at 144 per cent In band 3 


1 Gold Coin* 

irraad— — *385-386 |*203^-203M 


8384^85 


■ azMt essed in stages down to 
per cent before rising to 15ri5* 
per cent before the afternoon 
help. Rates teen eased to 14* 
per emit but rose duW t .™ 
touch 20 .'per cent before flnishing 
nearer 10 per cent. 


and £28m of local authority bills w» xrugarrand j 
it bought f5m uf utigible teuit KSgSSiS;! Slfl^u 
bills at 14J per cent and in band Kin9 smr«i B nw 8104-105 
4 £15m of Treasury biUs at vieferi* sov*.-...- sio^ioa 

i 4 per cent- ' eo mLvi 

In Frankfurt call money fell Aartrix. »s 64-367 

to its lowest level for nearly a saoExgiM s 502 -sob 


nearer iv per wcul. iq iia iuwoi lvi uwv « 

The Bank gave an early fore- yw j n the money-market, Tieing 
cast of a' shortage of £400m wim quoted at 9.5 per cent Compared 


(£215*-22*4r 
(£204*4-2043*) 
^48*c-483«) 
(£64*: -553*) 
«543*-5S3*j 
(£47-52 *41 
(£244*c-246*ei 
15192*4-193^1 
265-258 U 


S41U-42U 

$382-387 

391*4-921* 

S 103-104 

3103-104 

S89 99 - 

3460-464 

S364-367 

8497-603 


(£198.4-198.9] 

(5196*1-197) 

(£138.0131 

(5199JS80) 


(£204*4-2043*) . 
(£10514.1053*) 
(£531* -64 *4) 

< £22-22 li> 

(£203(4 -205 J«) 

(£483* -49) 
(£55-651x1 
1 £5565*e) 
(£ 471 * jam 
i£244V246V» 
(£1935,. 185 >* 1 
1 £264 *«-267ii* 


,^bms mn tn ring m official hands 10.10 per cent on Monday. Bundesbank s recent offer to ahead on their 

! and a n»t Take «i> of Treasury reflected the very easy rediscount bills at 10 per coil, requurements. 

; bills aiSounSg for £I20m and conditions created by some In addition banks have yet to ‘Jj* 1 J“2L. 

L Ex<^^er tratKactioni dra in i n g dm lSJbn available under two deal with end of month mx pay- «ndw the speca! Lombard 
] a further £3l5m. Tie shortage repo rob ase agreements and the men is and are at present .well facility down to DM 500m. 

1 was revised at noon to around 

« £450to : and tee Bank bought LONDON MONEY RATES 

; fSSOo-.of bis, comprising £J0m ,L^.IJUk ( l ^c . 1.1... I. H.. ~ 


Bundesbank’s recent offer to ahead on their minimum reserve 
rediscount bills at 10 per ceDt. requirements. Current levels of 


lAUUbl U3V *nl 

facility down to DM 500m. 


; wm BATHS 

; NEW YORK ^ 

i pfiwa.ratfl 

; F*d. 

. Tnreoury Bill* (13-WMk) 12^ 

j Traojoiy bills (26- wsok) 12.92 

t GERMANY V ;- -- 

! liiMcial-: Lomboid 10-59 

‘ Ovarmghr rsu — .. 10 J5 

, Ona anmli ;,., v 10.55 

- Thro* moftUiaL-'..--.- - 10.50 

^ Snt-rnniihi..,w.,* l .. lM>l „ l .m 10 JO 
; FRANCE ' - : - 

> iMabttmiwt’Tate- 3 ’.... '14.75 

; Overnight rat*' :..T . T6.1JS 

- Ono month J,-„ 15.1876 

t Three rnor.tka , — 15.1875 

■- Siv month* r " , 1S.S5S 

i japan . 

; OraeouM rata L -6J0. . 

• Call ((meondihon*!) — — . 6-Sg- 
Bill irgcoutU' (thcoo- month)...' 6.S SSn& 


Jan. 19 
1SS2 


MPning . 

Cortifical* Intartaaak , Avtharity 
erdapMit : <i«p«ata 


Overnight^ ' — ; 10-20 

2 day* notice-; — I — ■ 

7 day* or.--.—.] — I 

7 day* notion.^ — ; 1 T2';2. 

On* month . JS'iaS 

Two raontta.— • 

Tbroo raohtto- 
Six months 

Ml i , a mnnfhl 1 I5i|pl4l; ; lB‘S-Uh 
wneimnuK -re-.Tv , 


1448-15 

ii:S5 

15-154 

1545Sb 


ISIr-ISSr 


14*s-145* 

140, 

143*- 141a 
15 


16-151* 

16-155* 

16-155* 

MT b .14H 

15*e-l5i| 

16Sb-16 


Tmhm Discount iCiigiain 

Haas* .OoMpaiqr. Markat 'Treasury : Bask 
Daiwslts • *> 8 wH » . C opoilts . BII1S4 j Bills* 

H 14S, . 13-141* — — 


1478-15 14*4-141*- — - - 

15U-1538 14S* 14nr ! 14^ l5fig 

1514-1518 143*- X4i| 14* I4&-14* 154* 

15t*-151t 143g-141j 14*14„ 14<-14'* 158* 

- — 14™ Mlg 


TVro 


Lccifl JirilionTtO* arid Iwancs hov«» «wi days- nat es cCinrs revai day* ft«od. Long-term local sinter * reengage 
ram. MminX *«• 13*3 oer osnc tow ysara 15*, oer sent; fivs yeere -Am cent. OBsnfe b re.ts n ub.e 

IfTbily^i M»1 ior.pnme 1»pw. Buying rates ter feof-nsan hwk !».::• 1*H»-t4**a per cenc four menu* trade blls 

15S SLSZm sell.irg ms lor on* month Tieesury b U* c «"“ wo ^ *7* 

iii nffrem App«»m*te sailing rets for ana month bank bfi’-s her esnr. jwo moos** P** ,nd 

J* cant: on* month treda b>lU 15*. per own; wo antra 15*. ov can-.; three aa»9ia W>* per 

u-hpm Bee* Rates (puWralied by fire Finance House* Assoc stioeT I BP* 6W rant ♦*om J»**“«Y 1. W- 

^ =** cent. C«rng Bank Rates for ,wdmg W h per 

rent Treasury 6^ Avsrsge wader rates of discount H-54&9 per cerr_ 


Senior positions at Barclays Bank 


BARCLAYS BANK has 
-appointed Mr Ted Foster and 
Mb- Paul Barrett divisional 
general managers of the newly 
formed large corporate division, 
which services the needs of the ' 
bank’s largest customers. 

* 

Sir James Dunnett, a non- 
executive director of IMPERIAL 
GROUP retires from the board 
on March 25. 

★ 

M r G. M- St. John -Cullen has 
been appointed a director of 
ENNIA INSURANCE COMPANY 
(UK). 

★ 

Mr John Nash has been 
appointed chairman of RELIANT 
INDUSTRIAL MOULDINGS. 
Tam worth, recently formed sub- 
sidiary of Reliant Motor, of which 
Mr Nash is also chairman. Mr 
Ritchie Spencer, managing 
director of Reliant Motor, is 
appointed managing director of 
Reliant Industrial Moudings; also 
appointed to the board are Mr 
Michael Bolton, Mr Cyril Burton, 
and Mr James Duguld. 

* 

Anew company. EXTRUSION 
SYSTEMS, has been formed to 
design, manufacture aod market 
polypropylene extrusion equip- 


ment for the UK and overseas. 
The company is based in 
Drighlington. near Bradford, 
Yorkshire and led by Mr David 
Slack. - He was managing director 
of Plasticisers. Engineering and 
bas been joined by bath the com- 
pany's sales director, Mr 
Jonathan Slack, and technical 
manager, Mr D. R. Newshohne. 

Mr Newsholme is technical 
director and Mr Jonathan Slack 
sales director. 

★ 

Mr Robin Nichols has been 
appointed chief executive 
of GREENWICH BUILDING 
SOClETy in succession to Mr 
G. V. Brown, who has retired. 

★ . 

Mr Peter Spear has retired as 
group director of technical 
services of Rubery Owen Hold- 
ings. He has formed his own 
company PETER SPEAR AND 
ASSOCIATES, based in 
Wolverhampton. He is scill 
con tract urally involved with the 
Rubery Oweo Group In an 
advisory capacity. 

★ 

The DEVELOPMENT COR- 
PORATION FOR WALES, has 
appointed Mr Alfred Bell as 
deputy chief executive. Until 
recently he was director of the 


British Steel Corporation, Japan, 
with responsibility for all Far 
Eastern activities. 

•k 

Mr A. J. Shepperd- has 
resigned from the board of the 
METTOY COMPANY due to 
increasing pressure of other 
business commitments. Mr R. 
Cooper has been appointed 
chairman of the company in 
succession. 

*■ 

Mr Andrew Thor burn, county 
planning officer for East Sussex, 
has been elected president of 
the ROYAL TOWN PLANNING 
INSTITUTE. He succeeds Mr 
John Collins, county planner for 
Cheshire. 

★ 

Mr Michael HoJford has been 
appointed general manager 
(director designate) of 
PERMALI .GLOUCESTER, a 
member of the BTR group. 

* 

CONCORD ROTAFLEX has 
appointed Mr Stephen Dun ford 
as group managing director 
following the resignation of Mr 
P. W. McGrath. Mr Dunford 
joins the company after 10 years 
with the Lex Service Group. Mr 
H. W. Smith has been appointed 
managing director of Concord 


Lighting International. the 
group’s main UK operating 
company. Mr John Robb remains 
chairman of Concord Lighting 
International but iu addition 
takes responsibility for the 
group's Belgian operations. 

* 

Mr J. R- Newton has been 
appointed to the hoard of W. N. 
SHARPE. 

★ 

Mr K l Regan has been 
appointed managing director of 
WACKERBARTH WHITTON 
AND WALK ON D S CARMAN 
GROUP. 

* 

Mr Michael Boyce has been 
appointed managing director of 
VOLSTATIC COATINGS. He is 
also president and chief 
executive officer of Volstatic 
Inc, the company's subsidiary in 
the U.S. Mr Boyce succeeds Mr 
Boh Lever, the founder of 
Volstatic, who remains as 
chairman. 

★ l 

Mr K. M. Hilton has been 
appointed associate general 1 
manager in the UK of CON- 
FEDERATION LIFE INSUR- 
ANCE. Mr George L. Wtllman f 
has been appointed chief actuary. 



FT UNIT TRUST INFORMATION SERVICE 


OFFSHORE & 

OVERSEAS 

FUNDS 

M| lu i —t— t 

PoctMi 70* MOO Uuokfi J. Tolex 52*2*4 


S.G. Europe ObNgattonc SA Leopold Jmpb A Sara (Cutmey) 

?. ftrewy re to Ub erfe UraaftCtM Hired Ct, SL Peter Pori, Gwnwey. 0*81-26648. 

LJ.SranraForei^iaoo MSB -.4 - 
Eurapa-OWgttioac ._| USS44.93 |-<LM| 132 «_ 


Fgnfak 

FMk 


Attay Rwrf M ma p raatf Loattei ^ 

P.a Box 73, X. Hefei, Jerwy. 053473133 FfaMOv hta unti OMri Ltd. 

Aireay % F4 t c '| — — I U* P-O^TS ^ 

For Mender Fred « Lb*fc 8 m* tart. Swnrey. 

ARra Hanoi A Kara Ira. Mgt (CJ.) fiTvSc « 
ICtwIagDtML 5L HeNcr. hi, CJ. 0534-73741 yrarinVifa.Cw*.‘- _5K% 

Mhn McmlM Mhr Rraanra {ntarreitonj 1 gj 

ACM 162«a»M l ^'ecS “**3^8881 
DMrteMii 4 ml 45 (0900642) (124% paj — ^id DnatoT 


LJ-StaritagFre^fflAaO 14111 -.4 - 
Ewara-(Wto>ttore_| US$44.13 |-OH| L82 ^ & stmn*B Ikgn. 

Eurotn hracrt rea ifa Ltd. 

fe1SA ! fS!&S' ^ 1 >UH 

Euraax lar. FM POU 109 J| J — GfitTnottlo.kCl. Jm4 14.7! 

FAC HgraL Ltd. Ira. Mdwi ML dart. *—»- t«l 

1, Latrvntc Pomtncy HO, EC4 Ql-6234680 FlrttSterOng OS.C U.4fi+IU0| — 

j=d if "*“■ - 

Pri«Jn.!UL WccfeDr drafts H MUareri lsnai» Brrere 


XMmwrt Benno Brm* 

20. Fri«±urti] St, Ed. 


SL, SL Haflar, 




Sm A Pro n>«r tu te w tesl 

P^ofSa* 73, S. HfHrr, JerSfy 053*7313 

Fired Interest Mi 

Ownsctanarit Bd-**t-|0M141 9AH } 

Mlr ^. lnt^t |pf %p --■j “J 

STSoMthRnl MU JJM — | *- T 

InttmtaL pj^B.98 10.7® J — 

Far E jraernrt—— — 

tSS5=p^ ffiSaj a 


4 037 

MbdraBog. 


*— Jre 15. — —Un W. (Wrei* * 
Sdvsdcr Ufa Great 
Entarprtre Horee, nrawMlh. 




fi rt wMrai t Sacoritm (C.L) Lid. (a)(cl(b) Rentas Find SA 
^tetaiSLItaltanJWrejr. ^SgTjffi? ^Tra^kS^ LiS 

L SSLfl^o3 Renl ° 9Jan - 12 i 

a ° y ^ Ea? - ^^1 Freakhqrt Trrat tao eitme 


StorH«F<l- D 


8. LA. Band Imertnenti AG 

2ft Bsarerttrtue CHbXCL. 2u& SmHuiilaad 
Brerer S«- Jan. 19 P1U65 147DOH-100 

Brak of America tatvratioul SA 
35 Bestewd Ro»al. Ureereboom GJL 


37 - rae.Natre-Dame. Urentaonrg 
H ^|5 Rem tag Jon. 12 1 USS£L» I — J — 

Freokfurt Trrat tawatmeat— CataH 
j aw Wlerarei 1. D6000 Franktart 

ajsr^^dsss ism = 


Free WwM Rand Ltd- 
ButUrfMd BUo, Ha n (torn, Bcnonta. 

MAV Dec. 31 I USSH3J2 I | - 

C. T. ItaaBMcnt «UU lid. 


WldhHrain»ra_JimiOLDlBBJM 7M Parie Ite, 16 Flndm anas. 

Pries at Jm M. Mai*, do Ju ZL Td: BUI/ ft*: 886100. 

Barbican Managers Uereej) Ltd. px 


Barbican Ma n agers (Jerseg) Ltd. 

P.0. Bern 63, SL Holier, Jmer 0S34 74806 
BartUtt.Ftad P322 22&2| | 2 


T 0534 74806 AnctMr lnt:_RI_ ll 

12021 | 200 Berry £ k>aZZZ] 


Bm&qfi Unicom IntematkwM tnBf g*— ; 

1, CtarinqCftro. SL Hcfier, Jme?. 0534 73743 G.T. M Staritas — 


126 44 

S^* 


Korea Int a rn atl snal Trait 
. Fund Mhu Korea InnsL Trrat Ca Ltd. 

. 1- ^ “aysa 

MAV (WM 7198.94) IDS Vdae USS10.170J» 

January IB. 

- The Karas Trrat 

- Baekan ta ve Usunl Trust Co. Lid. 

FKl Bo8dta4 1-124 Yokto-dong. Seed, Mom. 
MAV 1 USOS27 | ....J _ 

Lazanl Brothers A Co. (Jtnoy) Ltd. 

PJO. Bor 108. SL Hdler, Jmqr, C.L 0534373U 

sgsisfez gnuordiiOi 

B Lloyds Bk. CCJJ UfT Mgn. 

PA. Bn 195k a. HdHer. Jersey. 053427561 

Uoy*T«.<fteas !©£ B9.D | 124 

Hot aakno date Jaarey ZL 
Uoyds Tnw Gift Efe? ._4 1530 

in ItaC dnna tfee Jsaoqr 20. 


m-i ~ 

S ch r o der MngL Servicn (Jersey) Lt«L 
PJL 8qy l95, SL (^42561 

l * 0Be * rt, itae *reKrbUw ( ^tawy 1 Z7. 

X Nervy Schroder Wkgg A Co. Ltd. 
12tvaespstae,EC2. 01-588 4000. 

Am. hM.Tst. Jan 13^ 

Asian FiadimiB 

Chci»ldeJaal5. 


Darin Ft). Jan M 


Schroder Unit Trrat Kgn. loL Ltd. 
BM273SLPHar PerLGwrtBey. 048128750 

|^fiujpnuKa ^^2 

Sctaote lih Assoraaca taL U4 „ 

imSteFrtl^J +7.3 l£?8 


ifiSHfiTtajar 

Da. 9nr. Facste..— jfztf .ZJ — _ 

Pa. Manx Mutual |gJi SbJj u® 

B Kh o pigdt e Conaodlty Sir. Ltd. 

PA Box 42. Douglas IjoJL 062423911 

m = 

Ortgtad (sire HO red -CL Not «4 Feb. 4 


G.T. DMstriajTS^ 
C.T. Invest. FiT__ 
G.T. ^pex StaaH Cos. - 
6.T. Tpdnwtogy Fd. - 
G.T. PadknuL— 
&.T. Asem Grawtb FI. 


Bridge Ma o a g ewnit Ltd. 

6P0 Boa 590, fiong Kong 

T-i In 

Biltain d c IntL tata ta t MagnL Ltd. 

%3&kJtSr n ' fc 

I^EHIhl 


Sartmora Invest. Lid. Ldn. Agts. 

2. SL Mary Axa. L«ataa, EC3. 01-283 3S31 

Oortawre Food Kuawn (CJJ UAjta) 00 


i-E Lloyds Brak bdamtisral, Gseraa 
i-S P.a Bn 438. 1211 Crane 11 (SwttsriHtf) 

- ut&tas=naiuna ss 


046 Lloyds Bank Inlmattaj i e l, Cn en my 
P.a Bax 136, Guernsey, Ctassal htecta. 

Alexander Fund | USQ2.48 I 4 — 

3531 Net isset irirelnvy M 

3741 MAC firaog 

UUB Tloee Drat Tower HU EC3S68G 01-6264588 
M Adaotic Ex. Jn*J9 

I AiBbeOMEk.Jta.12_ 

— Gold Ex. Jm. 


102^ *13 10J» 
*15.91 +53 LOO 
Next dafing Jmaty 27. 


fssaia, 


Go rt o n a * FOB* Moran (HMD (a) Mraogimnt tatentloral Ud. 

P J, Bax 3 2 Dougta*. jgenfllM_ Tct 0634 23911 Bk rf Batrareh Kdg, Denaude. BOM9S4DOO 

Asslcanulmi GENERALI SjUL rid* • JrarafS. dMfcg Joraw S” 

PXL BCX132, SL Pto ^PBrt. 6*rnra, OL NBdtand Book Tit. Corp. (Jersey) Ltd. 
Steitiraittxaayd Fd-gl^Tj ffi.g — J_ ZB-34, KH SC. SL Hader, Jersey. C534 33231 
Dollar Uu®. F*C I«1B*1 11003 — 4 - MW. Drayton Gift (84.5 KJM +2.91 Z123 



Ap3lto».J 
JagtartJn 
SGreepJw-4 


_ | _ j _ Japan Ft*d Jan 15— 


OtaSiD^Tre ^^iS. Hasibra Pa ci f i c Ftand MgsL Ltd. 

2U fl- Cotansglrt Centre, Hoes Roeg 

^Tlx) SST.T- ssaacm sa :d = 

sms®, Ssss?' <tL ’ “ 
iffi&da esEST 

■afterfield M e na g e a i eirf Co. lid. 0?4TO»ftaf, 

PA B« 195. Hamilton, Bcrereria. h^fl 

teBSSt=d^«=J« S^A-yus 

Prices at Jre. e. Not reb-rtram L Si 


Bi 

, u BnmBta ManageMCsS Ltadtad *“f . Dalian fie nnret |W P 

_ PA Bex 73, SLNeHer. Jersey. 053473133 fem ur! Meiltsill 1 1I11 finiiitl 

3LOO —I «• IIAOHbS^CZ. ^^flMMM64 

a Z2CL- gHjUL - 

*36 PO Bk 388, SL Peter Port. Gaerauy. 048123506. £j B Gnwp Jan. * 


1 » 

Mtaerak, OHS Rot. Sbn. FcL Inc. 

PA Bn 1H SL Heller, Jersey. 0534 27441 
MORES Jon. 14 JUOT25 9.751 ,._.4 - 


Murray, Js tairto na (tav. Adviser) 

163. Hope St_ Ciasgow, C2. 041-2215521 

Hope SL AilIS UM4956 |-L7» - 


©981-26521 X63, Hree St_ Ctregir 

^aoasS 


I...J - 


1K&I “ Sfl ItaL W estm in s ter Jersey FA Mgn. Ltd. 
l£*a ! IS 2V25 Broad SL, St Hefier, Jersey. OSM 70041 

ai= ~ 

^Cn^Docy.*^^' ^ - Handenoa Admin. (Samraey) Ltd. Ncgtt SA 

MilT l ^.PgVg^g. WM3»«g Si Baftori Heyo), Imtaora 

'V -7 Aeoericaa (US c ra»M128 J 127^*05) — NAVJM15 _jiSSU7 — | . .. J — 

1ZU Grren ill C0Dfl22 4662® ^ UAL WtnttM Ltd. 

bh*b f awTiMI :z:] i 50 l t?T^ K#n0 . _ m &»»,,. ti. 

' Jm 3 Teefe. *Jen UJInUx 

Capital Asset Mangers LM. 

SSSi‘ BRSHM sm hi m = 

to^tatanratta Mi Fund SA ■ S^^R^^*ntx*ra 

« Boulevard teyal,,L nranko ra <* PrdWray drew. ItanMr deetagL 1 - 022 } - 

Carittl Iol Rota 1 USS25.96 I — KRt-Sacuiel A Go. (gBfyiy a g? Ltd. tan An.- M. & SL lax. TtagU Lt*. Iradta. 


^S'ltttdeFO 

Epu-ty Life rd 

JMcej ea Janaiy 

Bcrim g eonr Keng-fiee Mngmt, Jersay 

1, Charira Cress SL “e!!sr. Jersey. 053*73741. 

Sentry Assurance hrienottonl Ltd. 

PA Boa 1776, HacHRcn 5, Berewda. 
MaragcdFiaxI |U3Um 504561 J — 

Oga! USB Assurance Co. ltd. 

2L Secrerayl Lane. GtarxtUr 0103507303? 

GmeD Sbatntai Rd_|£2J8 2081 .._.J — 

Stager & Friadiaader Ldn. Aer n te. 

20. Canaan SL.EC4. 01-2489646 

nSW 3 !:^ HS 

Strategic Metal Trust Mng rv Ltd. 
3HCStrecl. Douglas. KIM 062*23914 

Strategic Metal Tr. — (U30i942 0.9661 J — 

Straaghtad Management Linrited 
PA Ow 515, SL Heller, Jersey. 0534-73460 

Comnsdby Trust [134.72 ICLfl) .. ..J — 

Sarine es t (Jersey) Ltd. 

4, HU SL, Oougtai, UeafMM 062423914 

Cogger Trust 032A3 13J»H>-11I — 

TS3 Tract Fundi (C.l.) 

10 WnrfSL,SLHMer, Jersey (Cl) 0534 73494 

IS'Sd -11 

Prtas m Jas 2D. Next (aft. day JmTZ7 

Tokyo Pacific H cW ngs N.V. 

*li£ah Mesagenem Co. N.v, Caracas. 

NAV per stare Jon. IB. USS89 68 * 023 

Tokyo Pacific Htdgs. (Seaboard) N.V. 
taflods Meregtm i ffi Co. N.V^ Curacao 
NAV per stare Jon. IB. US365.44*0J7. 

Tyndafi Snwp 

2 New SL. SL HeSer . Jersey- 063437331/3 
T 0F5l . An.14 , Jfjjg 12.40 J IM 

grazil 206 
iud 100 

ms 

1773 1 - 

■f Mm. 0629,24111 
9L*| .._.jT6.7B 



Iftan-J. Acc. lib.) 
GUt FdJm 13_| 

(tam Stares) J 

agjjaaj 

(AcaraBl^^ra 






_ PO Bm 121, St I 


el Life Ass. (C.L) 

PnrL Guensey 0481 26726/9 
tail KM 1 - 


resit al Assets M a ra g— —t Ltd. B LeFetrer St, SL tar PoaGrerexy, Cl. mm -- I, .1,1 .ttm .1 

Chataiet Use, SL Ka«er, Jerury. 0534-73673 SsemsejrT* U «2fl ZOA | 1 142 ™*°°L 

Cetarta Vnm gOB.lS 208L2BI — I - IB | -|i„,| Imuilsual Mg t nBa,T7 ’ SL 5 ^ K * r ''“'V &*•"*-_ I 

GhnrtariMnsa JMKt PA Boa 63. Jersey. 053476029 

•MrertDK.£lWab.tatal Boa 2622. 

CtaMtan CwanradNies (Me sf Matt) LhL 
2A Aflwl Street, Douglas, tit.IL 062*217^1 

1 LC. Trust Managers Ltd. 

- wMhMu <■ 

taM.Mra.RL J227£ 2*7£| ..-4 - ^ * PA Box mSL Heller. Jtney- t 

r- j, - ■ WF Managosamt Serricra tat, 9^ ■ 

ir ?*. . c/o feektrert. PA Bat 104*. Cawaa k. EWL 8^5} ■ 

10a, Boatewsrd, Rojxl. Lirewttqiae. taterirt. GaM Rxxl__JlojjZZ 75JKI--6JO — 

Carteza (rest I U5SKL20 h*L02 — w ^ PrSces re Jtarery L NoS beefing -ta 

„ sssssiLSsstur . 


Fired Interea 

taptttjlh. 

Urerta,[)K 17 
’ latLEec. 17- 

la. id. Dec 0 

Conway. IntL Dec. 17 
Pacific InL Dec 17 _ 

M. 6. Tyrrefi A Co. (Jersey) Ltd. 

P.0. BOX 426, SL Keller, Jersey, C.l. 

One 1 - USO&Oq ... J - 

8JS ICSICftM ssso, 0 ^" 11 

tlidiai kinitiaent Beielhthuft atbH 

Pnstfadi 36767. D 6000 Fratafurt 16. 

Urirenta mSS SSWidj - 

Vaabragb Ftaod Mnfimt. ML Ltd. 

2834 HB SL, SL KeNevlency 053436281 

VatanxA Carerey Filjlif; J 3B7JJ | 9 JO 

van Cutsare A Asi act atas Ltd. 

42 Crerx SOkl tantav MC2 0I-3536MS 
PaaAoter. 0’s. FdJ USS6J3 | ....J — 

&. 6. Vbtkerg A Ca. Ltd. 

SaCrettam Street, EC2. 01-6004555 


Writ Mm.Jta.lS Jit 


K5, Sl HeHar, Jersey- 


BWS Oantscba Bcs. F. Wtatyapknp 
t nanaira 111 6000 Fretafart 
Ireen PH2U3 30J0HO25I — 

Haiti Gra ny 

PA Box 3012. Mama. Bnreui 


EtarenUMOftarPtapiOR. JW - 256 

Intenattowri Bond Trrat 

2 Boabeard byd, Lueiatxxra 

NAV Jaa. 19 IUSS9M7 2L47HOQ2J — 

■ » »« - - ■ BtataHKra Ih HmiA | A*J 

uupiiu miw riui B. ht. svgwru ud. 
PA BOX R237, 56, PW SL. Syrintr. AaSL- 
JiMrfin Equity TsL _|AS3J1 3AA4 1 6JS 


MC tovastneat Maragers United 

PO Sos 246, a. Pear Port, Guernsey. 0481-29021. 

SffiSESa«^ = 


PA Box 3012. Mama, tatreare ireefin Eqaity TsL —IAS3J1 3JA4 1 (jg 

E&J?j^^ :i ra5S^ra i BSata.^^lifi6^BOOO fraestnieBt Adrisars. Me. 

Dentscter tawstment-Trast FSm'taSS'SI 

srsss53r=jaai saia = 

ftyyte hte Mg h w U hm Fa- ZCk^Ci^St.F«ete r Jmey. C5M7374L 

asj&aarsa-j bessss^N 13 


(80949) 2-7979 
MB -.-4 _ 


KAVjtal2 WSZ7J9 2W3 — 4 Gtt lm Ftxal — gS 3M -_4 

Ihnw Lawrfe lav. Mgt Ltd. *“ Jl " 

Vkieiy Htu, St Prtar ItaL G a e n i sf y. D481 2MB4 Jordhie Fl einln B A Ca. Ltd. 

aaSSfearr:®, «H* ~4 IS ^”'1 "3 

Em A Dudley TsL. MgS. Jwy. IhL 

PA B« 73, SLHeflK Jersey. 053473933 ”--1 

EAI.C.T. nac* rgm J — itSSISw 11 1 T ' ui»m ca i t 




EAIAT. P2SJ 13S.fi . 

The EAgRsfi Aaacfathm 
4 Streec. Ed 0! 

EJL tacoaw FL*. KOJ .642 

•ffitt dMtag Jm ST=IIw» *Mta# 

EUrabend HaMtaga *LV. 
PtatMwal 15, WBttasiai Ctnan- 





01-5887081 
1 4 7.71 


JJF.astreuTst,^ 


= |:::J HI 

ure.re SSEfe^P = 13 5“ 

— 4 930 lataw Agt# ItabL Rretag 4 Co. Tei; 01-2832400 


- M a ragmut (C.L) 

Tea nf 1 “r G«TMry. (MS 25331 

LS8 Ufa J Ml 

(liB fi-fc- rjm u ril ied M L *S jl 

re 0-iil « 


Earekhta. 


mfjsm 

prices *a Jre 
.Pries ee Jan. 


jWtaL i r a. Z7J 

*ra"*aOnB Dec 
W deaBog Jnv 20. 




Setae! Rk. Dec. 15 _iUSSll37 CBl 3 — 

Wa hi g bmsL MngL Jray. Ltd. 

7 LAoary Place, SL Heller, Jsy. Ct 05343721; 

IP!# B^“ 

WanOey imratment Services Ltd- 
4Qi FMer. HnKMsM House, Hoag Kmg 
WstSry Trust .108 2830] ....J Jl? 

^sst^S WM fl 

W a r fley Jepta Trust .j^UJ 1S00| — J 122 

Warid Wide Grawtb Mnagcnwotg 

Ida. Boutewid ReyM, LumCnorg 

WtaMutae Gdi Fta USC2.96, J-OIA — 
tax. Mu Ml. 6 £ Id*. MraL ltd, UaakKL 

YAnn Canunndter Managrnwnf JLUL 
ID. Sl St. »M0a> IdM 062425025 

WreaCtnanod. T*L . ' 

SSSUtStfS 

Wim IntL FnL* .1 — USMJ ....T — 

'Intoal ofler period dosing Jn 26. 

NOTES 

Phocs are in peese utdess elhmrfae Inflate! 
yi*Mt%fVxwn tafiHtcehmaiiJidowfcr art (spying 
meraei. a Ofiered Brices inetafc Ulnme. 
a ToMyl pr*w. C VWd based pn Drier price 
A Estimated. | Tneayl opening price 
k Dbtrtaietaa lire of UK trees, p Pertodlt 
preauae insurance plans, s Starir prenwre 
( a saranse. > Qfiered price tadodn *R npesaes 
exenn •grot's amtaion. r Offered price jndadet 

ad expenses 8 boocM rtwwxP 1 auogml Pscviou 
day’s price. 1 C u erstay oms. * ScBpmdnl 
* VMM before Jersey tax. T Cx-otadhMon. 
St Ody real Lade to ctaraable bodies. 





32 


Financial Times Wednesday Januai^ 2011982 


Companies and Markets 


WORLD STOCK MARKETS 




NEW YORK 


Stock 


Jon. 

18 


Jon. 

IS 


36 

as7 B 

35* 

255* 

39ii 

121 * 

871* 

83* 


ACF Industries. .. 

AMF_ 

AM inti 

ARA 

ASA. 

AVX Corp,., 

Abbott Labs 

Acme Clove.. 

Adobe Oil A Gas..l 38* 
Advanced Micro.! 17 
Aetna Ufa ft Gaul 42l< 
Ahmanson (H.F.)] 125* 
Air Prod & Ctiemi 35 

Aiaon* ! 10 

Albany ! 26 

Alberto-CulY 12* 

Albertson's, 25 

Alcan Aluminium; 20Sa 
Aloo Standard — { 17* 
Alexander ft Al— 24 

Alegheny Inti 

Allied Corp_ | 

Allied Stores. I 

Allls-Ch aimers....! 


357| 

22* 

37 B 

25* 

38* 

12 * 

26* 

21 * 

29* 

16 

42* 

12 * 

35* 

10* 

267* 

12 

25 

20 * 

17% 

24* 


28U | 281* 
42* ; 42* 
25* j 25* 
145 b 14* 


Alpha Porta ! 11% i “H 


ueoi 

A mai. Sugar 

Amax...~ 

Amdahl Corp 

Amerada Hess — i 

Am. Airlines i 

Am. Brand* . 26* 

Am. Broadcast’s) 32* 

Am. Can - 

Am. Cyan amid ... 

Am. Elect. Powr. 

Am. Express. — 

Am. Gen. i nance. 

Am. Hoist ft Dto.J 
Am. Home Prod..i 
Am. Heap. Suppyl 
Am. Medical Inti.. 

Am. Motors 

Am. Nat. Resca&J 

Am.Patfina. 

Am. Quasar Pet.j 


24* ' 24* 
47* I 47* 
39* I 397« 
28U i 26* 

22* f 22 
97 B | 97* 

36 
32* 


31* 

26* 

16* 

41* 

40* 

15* 

35 

38* 

23* 

2* 

34* 

60 

10 * 


31* 

26* 

16* 

41* 

40* 

16* 

35* 

371g 

237 S 

2* 

39* 

60* 

10 * 


Am. Standard.-. 

Am. Stores. 

Am Tel. A Tel..... 

Ametek I no. 

Amfac - 

AMP. - 

Amstar - — ... 
Amstead Inds.™ 
Anohor Hocks — ; 

An house r-Bh 

Areata. — 

Archer Daniels... 
Arm co 


25* 

27* 

66 * 

29* 

27* 

47* 

257 g 

33* 

16* 

39* 

373* 

17* 


26 
27T B 
56* 
29 7 a 
28 
47* 
26 
34* 
17 
»% 
38 
17* 


23* | 24 


Armstrong CK....; 16 

Asamera Oil. ; 11* 

Asarco ) 23* 

Ashland OU I 27* 

A*$a P Good*..../ 25* 
Atlantic Rich-....; 42* 
Auto-Data Prg....l 

Aveou ; 

Avery Inti..- 


25* 

IB* 

237} 


15* 

21 * 

22 * 

27* 

25* 

42 

25 

18* 

23* 


Avnet.. 

Avon Prods 

Baker Inti 

Balt. Gas A El 

Bancal Trhrt. 

Bangor Punta. .. 
Bank America.... 
Bank of N.Y. 


Bankers TtLN.Yi 31* 


44* ] 44* 
29* 29 

33* 33* 

23 23* 

26* 26* 
18* ; 18* 
19 19 

40* 40* 


16 

46* 

34* 


30* 

153/ 

48* 

331* 


Barry Wright.. 

Bsusch A LombJ 

Baxt Trav Lab . 

Bsatrloe Poods...; 17* i 17* 
Beckman Instr,, • 43 I 43* 

Bekerlnds ! 

Balt A Howell..., 

Bell Industries 
Bendlx ... 


7* 

20 

15* 

64* 


Beneficial IB* 
22 * 


7 

19* 

15* 

64* 

18* 


Beth Steel 

Big Thee lnds.....i 26* 
Black A Decker.. 1 151s 

Block HR 

Blue Bell j 

Boeing - ! 

Boise Cascade ... 

Borden- 1 

Berg Warner—...! 26* 

Braniff Inti 

Briggs Stratn ... 
Bristol-Myers..., 

BP 

Brookway Glass.. 
Brown Forman B| 

Brown Grp - 

Brawn A Sharp... 
Brawng Fonts....: 29* 
Brunswick 18* 


22 
26 
lfi* 
36* j 34* 
23* ! 24 
21* I 207 V 
32* 31* 

■7 s " “ 


2* I 
23* 
52* 
22* ! 
15* 
29* 
27* 
18* 


27* 

26* 

2* 

23* 

52* 

22 

13* 

29* 

273s 

18* 

293s 

17* 


Stock 


Jan. 

18 


Columbia Gas — 30* 

ColumbiaPlct — «» 
Combined Int.. J f 1% 
Combuetn.Eng...; 33 
Cmwith. Edison..! 20 
CommJSatelite.... 


Jan. 

15 


so 

41% 
21* 
32* 
1978 
62* i 62* 


Comp Science.. . 1 14* 

Cone Mills : 28* 

Conn Con. inn. -.1 
Conrac— . i 

Com Edison ; 

Cons Foods. ! 

Cons Freight—., 

Cons Nat G*« 


uonjra»wi*~-.| - • 

Consumer Power 26* 


14* 
287g 
477 b | 47* 
257 b 237} 

S3* 31* 

29* ! Bfl% 
37* ! 58 
4573 I 46* 


Cont Air Lines.., 

Conti Corp | 

Conti Group 

Cent. Illlonis 

Conti Talep. ........ 

Control Data—.' 


4 

24* 

31* 

32 

15* 

58* 


27* 

4 

24* 

31* 

31* 

IS* 

32* 


49 

10 * 

35* 

<8* 


Cooper inds. i 

Coors Adolph | 

Copperwold ; 

Coming GCass 

Corroon Black. ...i 20* 
Cox Broadcast 1 g.; 34* 

Crane - 32* 

CrockerNat . 28* 

Crown Cork- 1 29* 

Crown Zell I 26* 

Cummins Eng i 33* 

Curtiss- Wright....' 37* 

Damon . 6* 

Dana. 25* 

Dart & Kraft 49* 

Data Gen —...I 63* 

Dayton- Hudson...! 26* 

Deere— 1 34 

Delta Air ] 24 


Denny's,.... ' 87* 


46* 

10 * 

35* 

48 

20 * 

34* 

32* 

28* 

29* 

27* 

34* 

37* 

6* 

86 

49* 

51 

27 

34* 

23* 

28* 


Dentsply Inti 

Detroit Edison.— 

Diamond Inti | 

Diamond ShankJ 

DlGiorglo 

Digital Equip 

Dillingham —I 

Dillon 

Disney Welt) . 

Dome Mines. 1 

Donnelly (RR) 

Dover Corp— - 
Dow Chemical.... 1 

Dow Jones— 

Dresser 

Dr. Pepper. 

Duke Power 

Dun A Brad- 

Du Pont. 

CGAG.— 


16 * 

11 * 

59* 

25* 

8* 

as* 

S 3 

8 * 

367b 

87* 

84* 

45* 

88 * 

21 * 

*0t 8 

61 

36* 

35 


17 

11* 

40 

25* 

B* 

81* 

12 

24 

50* 

12 * 

367} 

27* 

24* 

453* 

28* 

12 

20 * 

61* 

35* 

35 


20 

5* 


iTg yyfl j 

Eastern Al rl I heaj 
Eastern Gas A FJ 81 
Eastman Kodak.! 71* 

Eaton ; 20* 

EchilnMfg. I 12* 

Eckherd Jack .... 33 
Electronic DataJ 22 
Elect Memories.1 3 

El Paso J 26 

Emerson Elect... *" 
Emery Air Fgi,-.j 

Em hart - 

Engelhard Corp.| 


42* 

12* 

32* 

24* 


197b 

5* 

21* 

70* 

29* 

12 

23* 

2158 

3 

25T B 

43 

12* 

32 

25* 


Enseroh ; 

Emhrotech ’ 

Esmark. 1 

Ethyl - ! 

Evans Prods i 16* 

Ex Call O j 83* 

Exxon 30 


24* 

14* 

49* 

23 


137b 

147b 

50* 

23 

16 

23* 

50* 


stock 


Jan. I Jan, 
18 I 15 


Gt Ml. PkC. Tea. I 
Gt Basins Pet—. 
GtNthn^Nekeesal 
Gt West n nan cl. | 

Greyhound 

Grumman; j 25 

Gulf ft Western-.! 15* 


37} 
3 s* 
55 
12 
IS 


37} 
38b 
34* 
12 
14 7g 
24* 
15* 


Gulf Oil 

HalllPB) — 

Halliburton— 

Ham me rm III ppr 
Handlaman ....._ 
Hanna Mining — ; 

Har court Brace.. 
Harniaohfagar m 
Harris Bancp 

Harris Co rp 

Harsco _■ 

Hacia Mining...... 

Heinz (HJ'i ! 

Heller Inti- 

Hercules. 

He rah ay . 

Heubiain * -51* 

Hewlett Pled 40* 

Hilton Hotels 

Hitachi....- 


32* 

27* 

4B3a 
26* 
14* 
28* 
18* 
11 
27 Sa 
36* 
17* 
10* 
26 


- 32* 
i 277 b 
; 48* 
26* 
14* 

: za* 
16* 
! ii 

, 277, 

’ 36* 

; 17* 

Id* 

i 26 
18* | 18* 
21* f 21* 
34 j 33* 
31 

_ 391* 

35* > 35* 
59* ] 59* 


Holiday inns ' 16* 

Holly Sugar i 53 is 

Homestake. ’ 31* 

Honeywell • 66* 

Hoover 9* 

Hoover Unlv- 19 

Hormal Geo. ‘ 17* 

Hospital Corp ; 33 

Household Inti...- 15* 

Houston Inds ; 17* 

Houston Nt Gas... i 40 


Hudson Bey Mng 
Hughes Tool.... 
Humana...—. 


19* 

34* 

33* 


25* 

53 

31 

63* 

19* 

17* 

327, 

15 

18 

40 

19* 

34% 

537. 


Husky Oil 

Hutton (EF) 

1C Inds -| 

INA Corp 

IU Int 

Ideal Basic Ind.- 

Ideal Toy 

(Cl ADR 

Imp. Corp. Amen 


7% 

34 

■53% 

43% 

13 

20% 

6Tg 

5* 

9* 


INCO -I 13* 


Ingersol Rand....' 

Inland Steel 

Intel.. 

Inter First CorpJ 

Interlake J 

IntorNorth 

IBM 


34* 

22* 

23* 

28 

317g 

28* 

817b 


77b 
33% 
33* 
42* 
13 . 
207b 

I 60 

i!5 

64* 

28% 

22* 

27* 

31% 

29* 

B97» 


Inti. Flavours [ 18* 

Inti. Harvester — ! 8% 
int Income Prop.! 

Int Paper. 

Int Rectifier-....! 

Int Tel A Tel 1 

Irving Bank- 

James (F8) 

Jeff rv-FH lot.... 

Jewel Cos-... 

Jim Walter — 

Johnson Contr 
Joh risen A Jns—J 
Johnthan Logan. 

Joy Maf- 
ic Mart... 

Kaiser Alum 

Kaiser Steel. 


8* 

55* 

10* 

27% 

49 

22% 

23* 

36* 

19* 

24 

36* 

11% 


4 317* 

16* 


15% 

45* 


IQ 

8% 

8% 

36* 

103, 

27% 

487 b 

22% 

13% 

56% 

19 

23% 

55 

12* 

31% 

16 

16 

45% 


Stock 


Jan. 

18 


Jan. 

15 


7 

.‘IBS* 


67b 

180* 

18* 

537 B 

77% 

227, 

7* 


MGM 

Metromedia 
Milton Bradley.... 19% 

Minnesota MM ... 54% 
Missouri Pac.,....: 77* . 

Mobil . — ....... .-i 23 , 

Modern Merchg.; 7* , 7* 

Mohasco 12* ! 12* 

Monarch U/T. 19* : 1814 

Monsanto [ 65* i 66% 

Moore McCmrk... 26% l 26* 

Morgan UP;- 

Motorola 

Munsingwaar-...! 

MurphyiGC). ' 

Murphy Oil _ - 

Nabisco Brands.; 30% 
NaicoChem 1 47* 


53 

54* 

14* 

13* 

26* 


52* 

53* 

14* 

13* 

27 

30 

46* 


Napoo Industries: 28 

Nat Can : 80 U 

Nat Detroit \ 23* 

Net Diet Chem— 22% 

Nat Gypsum | 20% 

Nat Medical Ent 16r« 
NatSemicductrJ 17% I 16% 
Nat Service lnd.< 24 , 24 

Net standard — r 15 , 15% 


21% 

30 

25* 

83 

197g 

17% 


Nett Steel 1 82% 

Natomas.- i 81% 

NCNB-. -l 14* 


22% 

22* 

14* 


NCR. • 40* 

New England El.: 85% 
NY State E AG... 14% 

NY Times. , 36 

Newmont Mining! 56* 
Nlag. Mohawk,... 1 12* 

NICORInc- ;i 34 

Nielsen (AO A.... 45* 

NL Industries ( 33* 

NUT- ! 81% 


39% 

25* 

14% 

35 

37% 

12* 

33% 

45% 

33% 

21* 


Norfolk A Westn 
Nth. Am. Coal. ...| 

Nth. Am. /Philip*. 

Nthn. State Pwr.. 
Northgate Exp 

Northrop 

Nweat Airlines-. 
Nwest Bancorp.. 

Nwest Inds. 

Nwastn Mutual... 

N wastd steel W. w 

Norton 4 40 

Norton Simon ‘ 18* 

Occidental Pet..! 227a 
Ocean Drill EXp-j 85% 

Ogden 24* 

Ogllvy A Mrth- ... 31* 

Ohio Edison f 12 

Olln l 22% 

Omark. I 17% 

Oneck \ 2a% 


60 

84* 

36* 

84% 

4* 

43% 

84 

23* 

757, 

10% 

83* 


50 
24* 
36* 
24% 
4* 
44* 
24 
23% 
73% 
10* 
25* 
397, 
18% 
*2% 
88 
24* 
31* 
12 
22 Tg 
17% 
28% 


Outboard Marine} 19* 
Overseas Ship. — 14% 
Owens-Coming- 21* 

Qwens-lillnoia 88% 

PHH Group 1 21* 

PPG Inds.’.,. 33 

Pahst Brewing I 13% 

Pec. Gas A Elect 80* 

Pac. Lighting ' 25 

Peo. Lumber. i 24 


19% 
15 
21* 
88% 
21* 
34* 
14 
20* 
24% 
I 83% 


FMC.. 1 23* | 23* 

Faberge 13* : 14 

Fedders I 3% 

Federal Co 22* 

FederaLMcguL...' 21* 

Fed. Nat Mort ..! 7% 

Fed. Paper Brd— I 267, 

Fed. Resources...} 

Fed. Dep. Stores.: 

Fleldcrest Ml < 

Firestone i 

1st Bank System 
1st Charter Fin...! 


1% 

33* 

23% 

12% 

32* 

9% 


3% 
21* 
21% ■ 
7% 
25* 
1% 
34 
25% 
12% 
33* 
9% 


19% 

23% 

51* 

17% 

34 


Bucyrue-Eiie......j 19% 

Burlington Ind... 23* 
Burlington Nrthnl 53% 

Bumdy I 183} 

Burroughs....—...! 34% — 

CBl Inds 38S, ! 38% 

CBS 43* • 43 

CPC mtl 35* J 35% 

CSX 54* 1 63% 

Campbell Red U 117, ‘ 

Campbell Soup— ; 54 
Campbell Tegg- 21% 

Canal Randolph.. 36% 

Can. Pacific ..— 32 
Carlisle Corp...—; 28* 

Carnation I 87% 

TeohCarp — . 39% 


11 * 
34* 
■ 21* 
’ 867, 
i 31% 
: 887 b 
• 87% 
I 41* 


Carter Hawley....i 14* 
Caterpillar.—... 61% 
Calaneae Corp— . fi 3% 

Centex-- « 23* 

Central A Sw 137, 

Central Soya — 11% 
Central Tel Util...: 29* 

Certain-teed • 11% 

Cessna Al reran.. 
Champ Home Bid 
Champ Int——... 
Champ spPlug- 

Charter Co 

Chase Manhatt'n 

Chemical NY 

Cheese Pond 

Chicago Pnoum.. 

Chrysler — 

Chubb 


21* 

a* 

17% 

B 

8* 

53* 

49*4 

31% 

19* 

4U 

45% 


14* 

81% 

54 

84 

137s 

11% 

29* 

11% 

21* 

l* 

17* 

8* 

8* 

04 

49* 

31% 

19* 

4% 

45* 


Cincinnati MM.... . 

Citicorp 

Cities Service 

City Invest 

Clark Equipment 
Clave Cliffs Iron.' 

Coro x ; 

Cluett Peaby 

CocaJCola.. i 

Colgate Palm-.. - — 
Colons Alkman... 1 12* 
Colt inds. as 


847, 

25* 
40* 
22* 
87* 
29% 
11 
16 “a 
34* 
16% 


24% 

34 

39% 

12* 

27* 

30% 

11% 

16% 

34% 

16* 

11* 

24T 0 


1st Chicago 

1st City Bank Tax 
1st interstate-...! 

1st Mississippi ...; 

1st Net Boston... 

1st Penn 

Flsons ... - ! 

Fleetwood Ent... 

FlexMfsn 

Florida PwrAU 

Ford Motor i 

Foremost Mck— 36% 

Foster Wheeler.. 13% I 13% 
Freeport MoM....' 21% . 211, 

Fruehauf. 19% 

GAP • 14* 

OATX - | 31% 


18* 

34 

32% 

13* 

42* 

3* 

8% 

107, 

18* 

287s 

18* 


18* 

32% 

327} 

13% 

42* 

2 

27} 

107} 

18% 

287, 

17* 

36* 


19 

14* 

31* 


Gannet — — 

Gelco 

Gen Am Invest..., 

Gen Cinema 

Gen Dynamics ... 

Gen Electric 

Gen Foods, 

Gen Instrument 

Gen Mills 

Gen Motor, 

Gen Portland 

Gen Pub Utilities 

Gen Signal 

Gen Telep Elec.... 30% 

Gen Tire.- 19* 

Genemco 


33% 

18 
X6* 

36* 

227, 

57* 

30 
41* 

34* 

39% I 39% 
47* ! 47* 
6* ' 5* 
36* 36* 

29% 
80* 
57b , 6 


32% 

17* 

16% 

35* 

22* 

56 

39* 

40% 

537, 


Genuine Parts. .. 

Georgia Pac 

Geo source 

Gerbes Prod 

Getty Oil 

Glddings Lewis .. 

Gillette 

Global Marine. .. 
Goodrich (BF)« .. 
Goodyear Tire— . 

Gould 

Grace- 

Grainger (WW|— , 


30* 

18% 

40* 

28 

59% 

19 

32% 

187} 

207, 

18* 

207, 

41% 

86% 


50* 

187, 

40 

277, 

58* 

19% 

317, 

19* 

20% 

181 , 

21* 

41* 

36% 


Keneb Services-;' 20% 
Kaufman Brd..— t 10* 

Kay Corp 

Kellogg 

Kannamebsi 

Kerr-McGee 

Kidds- /....' 22% 

Kimberly* Clark-j 63 
King’s Dept St ..I 31, 

Knight Rdr.Nws.! 281, 

(toppers 16 

Kroehlar i 8% 

Kroger 85 

LTV. ' 14% 

Lanier Bus. Prodl 187, 

Lear-Slegler : 87* 

Lease way Trsns.’ 26* 


20% 
10* 

12 * ( 12 * 
82% > 12% 
35 ! 33 

365, , 35 


22% 

63 

4 

287 8 

16 

8% 

247, 

14% 

18% 

27% 

257g 


Lenox. ' 337, 

Levi Strauss....... 27 

LevitzFurntr \ 34 

Libby Owens Fd., 83% 

Lilly <Elh B3i, 

Lincoln Nat - • 407, 

Litton Inds ! 60S, 

Lockheed- I 46% 

Loews- ’ 83* 

Lone Star inds 27 
Longs Drug Strs.1 26< 9 
Louisiana Land 
Louisiana Pac. ..." 

Lowensteln 

Lubrlzol.. 

Lucky stra. ; 

M/A Cam. Inc 

MCA 

MacMillan— ; 


' 33* 
| 87 
I 34* 
23% 
52% 
I 40% 
j BO* 
I 46% 

! 83* 
I 267b 
. : 87 
3Qfg i SOS, 
177, ! 17 7 e 
26* : 26* 
22% ' 82* 
13* ; 13* 
23* . *2% 
41* | 38% 
15% ! 15% 


52* 

32% 

14% 

29* 

74* 


Macy — 

Mfcrt Hanover.., 

Man villa Corp..-, 

Mapco 

Marathon OIL.... 

Marine Mid 1 23 

Marriott. —....• 34* 

Marsh McLsnn 31* 

Marshall Field.... 
Martin Mtta.— 

Maryland Cup 

Masco - 

Massey-Fergn 

Mass Muitl-Corp.' 

Mattel 

May Dept. Stn.... 


1S7 8 

30* 

33% 

37* 

18% 

13* 

84% 


52* 

33 

29* 

74* 

23 

34* 

31* 

16* 

30% 

33* 

36% 

17, 

18% 

12% 

84* 


25 

141, 

34* 

607s 

29% 


Maytag 

McCulloch 

McDermott > J Ri 

McDonalds 

McDonnell Doug. 
McGrow Edison.' 31* 

McGraw-Hill 4B 

MoLeanTrukfl .... 

Meed 

Media Genl 

Medtronic 

Mellon Natl 

Melville — 

Mercantile >ts.. 

Marck - 

Meredith 

Merrill Lynch.— 


7 

22 

36* 

37 

34* 

377, 

54% 

82% 

58 

as* 


84* 

15 

34 

59* 

29% 

31* 

47* 

7 

21* 

357g 

35% 

847, 

37% 

54% 

81 

57* 

32 


pttc.reiArei ; 10 


Palm Beach. 

Pan Am Air. 

Pan. Hand Pipe-. 
Parker Drilling... 

Parker Han fn 

Peabody Inti...— 

Penn Central 

Penney fJC) 

PennzoJI 


22* 

2?b 

30% 

18Tg 

80 

6% 

38 

88* 

40 


29 
83 
2* 
30% 
18% 
20* 
6% 
se- 
as - 

40* 


7% I 7% 


Peoples Energy.. 

Perkin Elmer. _.J £4% i 23% 
Petrie Stores ...J, 21* 

Petroliuie. ■ 18% 

Pfizer- 62% 

Phelps Dodge....! 32* 

Phi la. Elect- I 13% 

Phllbro— i 24% 

PM!'P Morris i 47* 

Phillips Pet ! 307* 

Ptllsbury. — j 39 

Pioneer Corp < 27* 

Pitney-Bowes.-.. 1 227, 

Ptttston— 22* 

Planning Res'ch.. 6 >b 

Plessey 67* 

Polaroid ....! 20% 

Potlatch , 26* 

Prentice Hall 23% 

Procter Gamble.i 81% 


21% 

15% 

61% 

32% 

13* 

25 

467a 

38% 

39* 

26* 

22% 

826 } 

6 

67* 

20 

29* 

23% 

80* 


Pub.»erv.E AG.. 18% ; 18% 
Pub. &, Indiana-. 21* t 807 S 


Pur ex 

Purofator ’ 

Quaker Oats. 

Quart ox — .... 

Questor - —...• 

RCA 

Raison Purina ...: 

Ramada Inns. 

Rank Org. ADR.,. 

Raytheon — 

Reading Bates ... J 
Redman Inds— 11% 
Reeves Bros. . ..' 49% 
Rsichhold Chem' 11 U 


24* 

55% 

3278 

18 

8% 

17* 

11* 

ST, 

3* 

35* 

20* 


25 U 
54% 
33* 
18 
8% 
16% 

‘J- 

3* 

35* 

80* 

U% 

49* 

11* 


RepubiicStoal-.' 25% < 23% 
Rep Of Taxes. .— 1 34* > 35 
Reach Cottrell. ..< 13* ; 13* 
Resort Inti A....—. 157g 

RevcolDSI I 24* 

Revere Copper— 13* 

Revlon , 31* 


Rexnord.. 

ReynoldsiRJi 

Reynolds Mtls—. 

Rite Aid... 

Roadway Expa... 

Robbins (AH) 

Rochester Gas.... 
Rockwell inti...— 

Rohm A Haas 

Rollins -... 


13% 

45* 

22* 

27% 

35* 

11* 

13% 

28% 

58 

15* 


15% 
24* 
12* 
297„ 
15% 
46 
22* 
27 % 
36* 
11% 
13* 
29 
581, 
157j 


Rolm - 

Roper Corp 

Rowan 

Royal Crown 

Royal Dutch. . .. 
Rubbermaid .... 

Ryan Homes 

Ryder System .... 

5FN Companies.. 
SPSTochnol’gies 

Sabine Corp 

Safeco 

Safeway Stores- 

St. Paul Cos ' 40% 

St Regis Paper.. 29% 
Sente Fe Inds-... 

Saul Invest 

Saxon Inds . .. . 
Sobering Plough 


31 
11% 
13* 
14% 
32% 
36* 
16* 
24* 
19 
22% 

32 
377, 
27% 


18% 

7* 

4* 

38% 


30* 

12 

14 

14% 

32% 

36* 

17* 

24% 

18% 

22* 

51* 

38 

27* 

49% 

28% 

187, 

2 i: 

28 


stock 


Sohlltz Brew J - 
Schlumborger .. 

SCM- ..... 

Scott Paper- _ 

Scudder Duo V — 12 

Beacon 

Seagram ... 

Seofed Power. 


Scars Roebuck... | 

Security Pac ■ 

sedco- — 

Shell oil 

Shall Trans 


Signal- 


simplicity Pau- 
sing er. ' 

Skyline ; 


Jan. 

18 

Jnn. 

16 

”l2 

”l3 ' 

51* 

50% 

21% ' 

21% 

16* : 

16* 

12 

12 * 

20* i 

20* 

56 

55* 

30% > 

307 B 

29 

29 

17 | 

IB* 

37fs • 

38 

31 

31* 

37% i 

367s 

B7t 9 1 

28 

16t 8 I'lBik, 

25* l 

25% 

35% : 

35* 

97a 

9% 

11% | 

•11% 

13 

MI. 1 

13 


Smith Kline., 

Sonesta IntL 

Sony 

Southeast Banks: 
Sth. Cal. EcHson-j 

Southern Co. 

Sthn. Nat R« 


62* 

10% 


62* 

104, 


16* ) 16* 
16% I 16* 
28% 28% 


12* 

30 


Sthn.N.Eng.Tel. 45* 
sthn. Pacific I 36 


Sth. Railway ! 89* 


Southland 

8 W Banoshares.. 

Sperry Corp 

Spring Wllla- ! 

Square D. 

Squibb— J 

Std.Brands Paint! 


29% 

30* 

32% 

24 

27% 

30% 

24* 


12* 

29% 

43% 

36% 
88% 
301, 
30% 
317, 
1 25% 
| 27* 
31* 
I 24* 


Std OUCWoralM.1 3ft 
Std oil Indiana... 47% 

Std Oil Ohlb- 365, 

Stanley Wks- ) 15 r s 

Stauffer Chem...; 20* 
Starling Drug—.' 217, 

Stevens CJPL .! 15% 

Stokaly Van K....I 32% 
ttomaa Tach— ' 32% 

Sun Co ! 58% 

Sunbeam [ 27% 

Sundstrand - t 38 1 


- ) auu 

Superior Oil J 33* 

tn—1 18 


Super Val Strs—! 18 

Syntax.—. \ 69* 

W-. ..! 507, 

Taft- 29* 

Tampax - 32* 


37% 

47* 

37% 

15% 

20% 

21* 

15 

52* 

32* 

39% 


38 

32% 

18* 

577 8 

50% 

297g 

32% 


Tandy : 34* 

Talcdyne 1134% 

Tektronix.. 53 

Tennaco— - 29* 

Tesoro Pet ! 22 

Texaco ' 31% 

Texas Comm. Bk' 39* 
Texas Eastern—.! 49% 
Texas GasTm. ...j 32* 
Texas /nstrirn’ts.' 75 
Texas Oil A Gas-1 51% 
Texas -Utilttlss....' 19* 

Textron- , 847s 

Thermo Electro-i 20* 
Thomas Batts.. ,. 1 50 

Ttdswater i 35% 

Tiger Inti | 12*- 

Tima Inc ; 55% 

T mas Mirror 45% 


33* 

1150% 

52 

29 

22% 

31% 

4Q 

60 

32* 

740 

31 

19% 

24% 

20% 

50 

36 

12* 

36% 

44* 


Timken.. 60Tg 

Tipperary- i 82* 

Tonka—.. 27* 

Total Pet- J 12% 

Trane - 25% 

Transam erica. .. 20% 

Tramway- > bk. 

Tram World I 14% 

Travelers-.. ; 44* 

Tricentral— 


8 


61* 

81% 

28 

12% 

26 

20* 

B* 

43% 

8 


Trl Continental 
Triton Energy.—. 

Tyler 

UAL ...*. - 

UMC India 
Unilever N.V...... 


Union Oil Cal 


Uniroyal 


20* ; 

20% 

.• 14 

147« 

. 21* ; 

22 

. 16 

15% 

, 11* 

11% 

.. 59% 

60 

.. 45* j 

45* 

, 47% | 

1 48 

33 

32% 

/ 48 | 

[ 46* 

. 6* 

6% 

10% : 

10% 

37 • 

36* 


US Fidelity G 40 

US Gypsum : 30 

US Home 11* 

USInde 9 

US Shoe ! 27% 


27 

18 

43% 

33* 


US Steel 
US Surgical 
US Tobacco. 

US Trust 

Utd. Techno/ga- 59* 
utd Telecomms.' 18% 

Upjohn 

VF .*... 

Varian Assocs ... 
Vernltren ..... 


51* 

37% 

27% 

11* 


40 

30% 

U2, 

9* 

27% 

27* 

18* 

43* 

35* 

39% 

18% 

51*. 

37 

27* 

11% 


11* 

53 

17 


Virginia EP 

Vulcan Matris.... 
Walker fHi Res... 
Wal-Mart Stores.! 39% 

Warnaco .. 26* 

Warner Comma- 58* 
Warner-Lambt- 21% 
Washington Post' 28% 

Waste Mangt ' 32% 

WelsMkts 37* 

Wells Fargo ' 25* 

W. Point Papal.. 20* 
Western Airlines 
Westn. Nth. Amr.' 
Westinghouse— 

Westveca 

Weyerhaeuser—. 


5 

81% 

25% 

82 

26% 


11* 

53 

17* 

39 

26 

55* 

21* 

28* 

Ji% 

17% 

85* 

20 

a* 

21% 

247, 

21* 

26% 


Wheelabratr F. .. 
Wheeling Pltta... 

Whirlpoo/- 

White Consoltd.. 
Whittaker.. ...... .. 

Wickes 

Williams Co.. 


39* 

50 

85* 

86 

31% 

26 


Winn-Dixie Str..,:- 28% 


Winnebago 
Wise Elec Power 

Woolworth 

Wrigley_ 

Wyly 

Xerox- 

Yellow Frt lys—. 

Zapata 

Zenith Radio 


3* 

26% 

18 

33% 

8 

39 

147, 

26% 

11* 


40 

29% 

85* 

25* 

31% 

a% 

86 

28* 

3* 

86% 

17* 

33?, 

8% 

38% 

IS* 

27* 

11* 


Indices 


NEW YORK 


-DOW JONES 


Jan. 

18 


Jan. 

15 


Jan. 


14 


Jan. 

13 


Jan. 

12 


Jan. 

11 


1981-82 'Since Cm pH't'n 


High Low . High ■ Low 


•Industr 1 Is' 855.1! 847.60 842.23 '858.8S 847.70 .850.46 1024,05 

, • i27l4. 

H'me Bnds. 56.49' 56.38 66.41 66,66 56.75 ' 5M0 B.78 

Transport.. 365.52 352.B3 ; 34B.B4 346.09 352.70 5UL95 447.M 

M0;4) 

Utilities 164.58. 104.19 105 J1 105.61 104.87 10S.B4 1I7.BI 

; | 15)1/911 

Trading Val 

000 -t 44,320 45,310; 42,940-49,15048,900 51,505 - . 


824,01 
<25/91 
54 J9 
ililOt 
355.49 
iKri' 
101.29 
MAI 


1051.70 41^2 
<11/1/77) 12/7/52/ 


■ 447.55 . 1SL29 
1 16.-4) 01) <9/7‘32l 
153.52 193 

(20/4) 65) <25/4(421 


eBay's high 857.78. low 838.47. 


Jan. 8. Dec. 31 Dec. 24 Year ago ■ approx 


»nd. dJv. r* 

MX 

8.38 

6.32 

6J5 

6.61 

STANDARD AND POORS 

! i 

Jan. ' Jan, 
14 13 

Jan. ■ Jan. 
12 12 . 

1981-82 

|Slnce Cmpirt'n 

: To* 

IS 

High Low 

' High ' Low 

Indust' Is-..- U1.01, 
Composite 117.32 

150J7 

113.18 

iM.ir i2a.« 

115.54 114.W 

129.97. 150.51 1S7JJZ 125.95 1BS.96 < 5J2 

' (8/1/Bli, 125/9) , »2B/1l'80iSfl/Si52) 
116.50 1W.7S 138.12' ' 112.77 140.62 4.402 

/G/I/SU: <25)9i (28)11 69 <1)6)52 

Ind. dlv. yield % 


Jan. 6 

Dec. 30 : 

Dee. 23 ; Year ago (approx 


5.50 

• 5.33 

5.35 . 

4.39 

Ind. P/E Ratio 


B.04 

8.26 , 

8.24 

9.62 

Long Gw. Bond yield 

i 14.25 

23.71 

13.60 . 

11.52 


NY. S.E. ALL COMMON 


1981 -88 


Rises and Falls 

Jon. 18 Jan. 16 Jan. 14 


Jan. 

18 


Jah. 

IS 


Jpn. Jen. 
14 13 


High 


Lew 


67.B4 67.41 66.9666.63 


79.14 

16H| 


64,96 

iZfi/9) 


Rises.. 

Fells.,, 

Unchanged 

Now Highs 

New Lows 


1/884 

1 J343 1,844 

764 

888 

719 

695 

527 

666 

425 

428 

459 

10 

11 

5 

64 

73 

90 


MONTREAL 


Jan. 

18 


Jan, 

15 


Jan. 

14 


Jan. 

13 


1 SB 1-82 


High 


Low 


Industrials 

Combined 


515.58. 514.59: 315.57' 512JB' 
267.22' 288.08 ' 297.16 287.25 


409.66 07 A) 
575.26 Oi.-fl 


510.21 (25/9) 
73S.37 05)9 1 


TORONTO Composita 1831.111515.20 1805.4 1.501.0, 257IJ fl0)4j <1,801.0 13/1/52) 


NEW YORK ACT1YE STOCKS 





Change 



Change 


Stocks Closing 

to 

Stocks Posing 

on 


traded 

pnee 

day 

traded 

price 

day 

IBM 

1,38*. 500 

61 \ 

+2 

Ganaral Motors .. 550.500 

33% 

.+ % 


896.300 

39?, 

:-mv 

Mattel 527/400 

13* 

,+ \ 


731.200 

30 


Am. Tel. snd Tel. 503.800 

58** 

“ % 


640.300 

33 

'“■1% 

Citicorp ............ 489.900 

25% 

:+i% 

TsndK 

601.200 

3Vi 

;+i 

Warner Comm.... 475,700 

52% 



Fresh early Dow rally 



j}.i 

e hi 


7 


0 


MONDAY’S afternoon recovery 
on Wall Street continued at the 
opening yesterday, but the mar- 
ket then slipped back to present 
a mixed appearance at mid- 
session after a fair turnover. 

The market was Said to have 
settled into a narrow trading 


Canada 


better earnings. OUyoda . although Metals and /Minerals 
' Chemical Engineering continued picked up l* 6 to yS2-0- 


kt\ 




Markets in Canada also dis- 
played mixed movements at mid- 
day after moderate trading. The 
Toronto Composite Index was 
just 0.5 down at 1S12.&, while 
Oil and Gas losiSl&5 at 3,309.9 


to rise, going up Y16 to Y744 
on news of a large order fxtoaz 
Saudi Arabia. Oils and Non- 
ferrous Metals also provided firm 
spots. 


range ahead of President *ut Golds pot on 63 to 2,4535. 
Reagan's Press conference, Leading the actives were Alcan 


scheduled for yesterday after- 
noon. 

The Daw Janes Industrial 
Average, which gained 7.52 on 
Monday, was 3.33 harder at 10.30 
am, but had receded to S 54.74 by 
1 pm, a ■marginal 0.3 8 below the 
overnight level The NYSE A11 
Common Index was off 10 cents 
at $67.74, after further improv- 
ing to $67.95. Rises and falls 
were about evenly matched at 
raid-session after trading volume 
of 31.64m shares (88.15m). 

Analysts said investors have 
moved to the sidelines to see 
what President Reagan will say 
about his economic policies, and 
particularly any statements he 
may make about the possibility 
of tax increases. 

Blue Chip issues led the down- 
turn. Volume leader IBM was 
off 4 at $62-2, while Exxon lost i 
to S292, Dupont 2 to $352, Union 
Carbide i to $462. Standard Oil 
California $1 to S37 and General 
Motors 4 to $394. 

' Rail stocks were also easier, 
bringing down the Dow Jones 
Transportation Average 1.65 
points. Burlington Northern 
declined 1} to $51{. Union 
Eadfie 1* to $461. Santa Fe 
Industries 4 to SIS} and Southern 
Pacific 4 to $853. 

...Digital Equipment rose U to 
884 in active trading on news 
of higher earnings. 

THE AMERICAN SE Market 
Value Index managed to retain 
a net improvement of 0.67 at 
297.16 at 1 pm. Volume 2.54m 
shares (2.61m). ' 


Germany 

A firm performance was seen 
AJ^^IT«C5M4;GSf W^adin* reached* 

Canada, down J at C$154, and brisk pace for the .first time *2 
Dome Petroleum, 4 lower; at several days. Brokers said 

xcuviciuu, * foreign and domestic investors after .the first 


Banking, Boiiififig, .Engineer- 
ing and Chemical stocks led 
Industrials' down . as _ the Ail 
Industrials index lost 5.1 to 697.8, 
one o£' -its dh&hpe&tr fisHs in 
. . , several months. KdUfiftg wag 
bneofthe few sectdra-tolit^rove 
' on the Industrial Imrds, - 
Resource '«todss 


■/ ■; 

sBV- 


C$12|. 


The 


ranaHf an imperial Bank of were attracted to West German higher 
whliTsald it has filed * stocks by the. 
fox a C3150m preferred share recovery against the XJ.S. dollar 
ior i vsiuuui and a long-awaited nrOy for West on trading.- . 

German Bond prices. The RHP’s report of a 2,600 barrels 
Commerzbank index rose 5.3 to a day OR Boat frijm ttoerOflC^ore 
672.0. . well Tarwhine -No 1 - was greeted 

Prenssag rose - DM 1.20 . to with s parse- ' enthu&aam by 
DM 197^20 and MetallgeseUscliaft traders. - BHP wns rapidly, bid to 
lost DM 1 to DM 254 after cut- . ' AS9.46 in opening trading, but 
ting their ainc prices. : . . . . . 

Public Authority Bond places - 
rose by up to 45 pfennigs; with' ■ 
the mood hxfluenced by the '. 1 
firmer Monday 'dcse on.-Wsfil 


t',. 


offering,' was up 4 ■ at C^27}. 
The Royal Bank, up J at CS254, 
said it has acquired a Swiss bank, 
Banque decider* tale Pour 

I/’Indusirie et le Commerce. 

Texaco Canada rose U to 
C$391 and Cominco 1 to C$51i. 


V/ 


Tokyo 


later ftR to 
cents bn the day. 


of. 4: 


The market "failed! to m a in tai n 
a firm start on the overnight .Wall 




Strert" improvement’ and "the Street and nnuours of possibly 

ren’s uSSn against the U.S. new Saudi Arabia^ ^lendmg to toe r --WWta. 


-V 


lens SmT were KSeS“‘ 

Bundesbank sold DM 21.1m,. of .. WaR . However, : trading 

paper after .buying DM 22.7m -aiia. Witih ^*dnly small 

the .previous day, 


Closing prices for North 
America were not available 
for this edition. 


dollar. 

mixed on balance after another 
moderate trade. 

The Nikkei-Dow Jones Average 
was still ahead 17.73 at 7,677.07 
at the close, but the Tokyo SE 
index lost 0.32 at 567.84. There 
were finally 30S advances to 305. 
declines on the First Market 
after 250m shares being traded, 
equalling Monday's volume. 

Moderate foreign purchases 
were detected in recently- 
favoured Steels and Pharma- 
ceuticals, but most ended, lower 
on the day, with Nippon Steel off 
Y2 at Y174, Yam anon chi Phar- 
maceutical down Y30 at Y1J3S0 
and Shfonogi Yll easier at Y909. 

Precision Instruments and 
Light Electricals mainly recorded 
modest net falls, but Fori Photo 
gained Y10 at Y1.300, Sony Y40 
at Y3.670 and TDK Electronic 
Y60 at Y3£40. 

Motors scored some rises, 
Nisan adding Y4 at Y834, Toyota 
Y6 at Y991 and Isum Y7 at Y472. 

A Dumber of Machinery issues 
were higher in anticipation of 


Paris 


investorsirthe market 
The Hang Seng, index ended at 
1.39&57, .. recotspiag 12.53 of 
Monday's decline of 24 .42. TXrrn- 
. Prices of French stocks were ' over totalled a mere HKJ 133.02m 
marked down across a broad on the four exchanges, less than 
front in sharp contrast to the the previous day's HK?168^8m. 


the 


euphoria observed on 
Exchange . on Monday. 

Traders said there were two 
main reasons for the turnrouncL 
the first was reports that the 


Singapore 


■With 

higher 


senohneat helped by 
Hong . Kong and . over. 


revised terms for compensation night Wall Street: ^ stock markets. 


to stockholders of companies to 
he nationalised will be based 
entirely ' on the average- . stock 
value over- the six months 
through io March 311961. 


Australia 


Singapore shares ' tooled turn for 
the better yesterday in - moderate 
activity. 'Singapore. Straits 

Times. Industrial.- Index, , . after 
.retreating 17 points on Monday, 
picked op. 2131 • to 765.40. 


Some - Mining Heavyweights 
recovered a . tittle ground, b'pt 
markets otherwise were inclined 
to dose weaker. The Australian. 
Ail Ordinaries index shed 2.1 
more to 547.1 'and die Oil asd. Gas 
sub-group index - 4.1' to . 600.3, 


Jc^iannesbiirg 


- 'Helped by the steadier Huffion - 
price. Gold abates tended . to 
harden-, in ^ quiet - dealings, j 
Elsbnrg, R2.80, and East Rand • 
Proprietary, E12.00. improved to . 
. cents ^apiece. 


■ J : • 


1'orid 


CANADA 


Stock 


Jan. 

18 


Jan. 

15 


AMCA Inti 82 

Abttibi 21 

Aanico Eagle—- 6* 
Alcan Alu min-... 24% 

Aigoma Stual ' 42* 

AatMstos 17 

Bk. Montreal ' 23* 

Bk. Nova Scotia. 25 
Basic Resources, 4.00 


22 

20* 

6* 

24% 

42* 

17 

23* 

25 

4.00 


Bail Canada. j 

Bow Val ley 

BP Canada. — .... 

Brasean A 

Brineo 

B. C. Forest 

CadillacFairvfewl 
Cam no Mines...... 

Can Cement. 


IB* 

17* 

27% 

22% 

3.50 

12* 

32* 

12% 

17 


18* 

17% 

28* 

22% 

5.75 

12* 

32* 

12* 

17 

11* 


.BELGIUM (continued) 1 

Jan. 19 

! Price 

+ or I 


j Fra. 

' 

Potroflnsu. 

■i 4,4001 

EM 

Royal 0 Beige .. 

..1 4,550 

■S3 

Soc. Gan, Banq 

2,155 

Bof 

See. Gen. Beige 

.! 1,146 

+2 

Soflna- 

3,160 

+20 

Sohmy- 

J 1,950 

-20 

Traoton Elect.. 

.; 2,260 

—26 

UCB 

.< 1,434 

-14 

Union Mlniere, 

... 630 

+ 10 

VIeiife Mont... 

.* l/foo: | 

DENMARK 



Jan. 10 

1 Price 

+ or 


i s 



Can N W Lands...| 33* 
Can packers i 32* 


Can Trusco. _ 
Can Imp Bank... i 

Gan Pacific- 

Can P. Ent ‘ 

Can Tire • 


28* 

27* 

38* 

16* 

33 


32* 

32* 

2B* 

27 

38* 

17 

33 


Chieftain 

Cominco- • 

Cons Bathst A. . ■ 
Cont. Bk. Canadai 

Costain I 

Daon Devei... 


19* 

50* 

17% 

7* 

9* 

4.55 


Denison Minos .... 32* 


Dome Minas.... 


15* 


19% 

60% 

18% 

77b 

9 

4.65 

33 

15* 


Dome Petroleum 
Dam Foundries A 

Dorn Stores 

Domtar 

FalconNIekal 

Senator 

Gt.-WestUfo 

Calf Canada 

Sulfstream Res... 


1 12% 
37* 
15* 
20* 
677, 
217, 
243 
157, 
5.50 


Hawk Sid. Can 11% 


I 12% 
, 37* 
, 15% 
; 203. 

677, 
j 21* 
'243 
1ST* 
5.76 

; n% 



Jan. ■ Jan. 
19 18 

Jan. 

15 

Jan. 

14 

3981-aa 

High Low 

AUSTRALIA 
All Ord.U'l.Wh 
Metal ft Minis. /I, I SO) 

647.1 648J! 
582.0 580.4 

657.8 

388.8 

5)58.2 , 
588.8 

7574 *8)41 
755J (7/1/811 

645A .29)10. 
580.4 (18/1)821 

AUSTRIA 

Credit Aktien <2i]B2^ 

&S.DF 66.47 

55.45 

55.45 

66.48 15)1)81) 

65.64 <13,101 

BELGIUM 

Belgian SE (SMliSSi 

SB. 72 88J9 

17.03 

87JE7 

88.46 (SiDWi 

SUB <16'6) 

DENMARK 

Copenhagen SE 1 MiTft 

125.41 122.68 

122.72 

1Z2J81 

123.41 (19*1/82 

96.88 12/1)81) 

FRANCE 

CAD General iZS'lZ.'fil’ 
Ind Tendance iil;l2 Bl> 

84.7 95 .3 

1D7.2 108.8 

94.2 

188.28 

94.2 ; 
1B5J 

HU n?)5| 
108.8 (18) lW 

! 77,5 il5r6i 
97.7 1 4; 1/821 

GERMANY 
FAZ-Aktlen )S1/12.<SS' 
Com m erzban k/Dee 1993) 

220.16218.55 
872.0 GB6.7 

218.68 

666.40 

219.68 

B7S.B 

245.47 iS-7t 
749.0 i3/7i 

216.88 <9/21 . 
566.4 (16(2) 

HOLLAND 

ANP-CBS General ) 13701 
ANP -CBS lnduat.lt 70i 

85.4 84.7 

86J2 . 66.4 

65.40 
65. SD 

84.9 

65.5 

86.8 rati 
7B.4 (22.,?/ 

783 i2|)«» 
81.4 (22/12) 

| HONG KONG 

| Hang Seng Bank .'31)7/84 1399,57 WBM4.l4lfl.49J5W.53 

18 10 2 D tnrr> 

1113,77 tSfWi 

ITALY 

Banco comm ttai.ci972< 

1B3J5 181 JB- 18GJ1 

1B4.T3 1 

282,05 (5/B> 

166,44 (24/7) 

JAPAN** 

Dow Average ilSS'Oi 
Tokyo Raw SEt4,l<«. 

7977.87 76S9.M 
687.84 568.16 

rci 
<0 . 

7887 JK 
568.27 

8818.14 iT7,t* 
605.92 1 17|8i 

535M2 iliiS) 
495,79 (5)1)01) • 

NORWAY 
Otic SE ) 1/1/731 

127.19- 126.61: 128.76 

1S4A7 

145J2(6/?| 

110.54 (5)6) 

SINGAPORE 
Straits Timas flSOi 

765.W 764JJ9 

771.80 

784 Ji 

B75JZ6 1SE/S1 

615J8 ( 1)9) 

SOUTH AFRICA 
Gold 11959) 
Industrial 0*5*1 

iu'i • 514.8 , 
<U) 703.9 ' 

— ’ 

610.8 ' 
7004 

767,1 17/1/81) 
711.7 'B/l.ffli 

375.8 15/71 
B57J (3/21 

SPAIN 

Madrid SE fHU'IS/H* 

104JJ2: id 

102.84; 

1B23D1 18442 /18)1/82) 

88.17 (5.1/82) 

SWEDEN 

Jacobson ftp. <1/1, 1 Ml 

648.87 664JHL 654.S8 S4ME 

680.31 110(81 

404,17 129)1/111 

SWITZERLAND 
Swiss BankCpn.: 51 -12l5Bi 

2BB.2 2U.B . 

260.1 

280.7 

804 JI (2)4, 

242.9 <17/11) 

WORLD _ ^ 

Capital Inti. (J'l-ril 

- 140,9 . 

140.7 • 

TS9.T 

182.8 (6(1/61) 

155.8 /28/9i 


(•*) Set Jsn 16; Jepsn Dow (c) T5E (cl. 

Base values d ail indicss ere 100 except Australia All Ordinary and Metals — 
500; NYSE All Common— 60; Standard end Poors—' 10. and Toronto— LOOP; **« 
last named bssed on 197S. t Excluded bonds. 1 400 >nduatrie!s- 5 400 
industrials aids <0 Utrfmee, *0 Fmairot* <nd 20 Tfaneporte. c Closed- 


u Unavaiisbia* 



Holllitgar Arguaj 30 
Hud tan Bay Mng.' 23 ' 

Hudson's Bay 

do. Oil ft Gat .. 
Husky Oli...._..... 

imasco 

Imp OllA „• 

Incc i 

Indal 

Inter. Pipe.. i 


XI* 

49* 

9* 

39* 

26* 

16* 

15 

14% 


30* 

23* 

XI* 

50 

2 s * 

40 

23* 

16 

IS 

14* 


Mac Bloods I 

Marks ft Spencer; 

Massey For 3 

McIntyre Mines.. 
Me Hand Exp far,. 

Mitel Corp 

Moore Corp. 

Nat. 8a* Prods A. 
Noranda Mines.. 


Htkn, Te I scorn- 
Oakwood Pet.... 
Pacific Copper... 

Pan ean Patrol...' 67 

Patino 

Placer Dev 

Power Corp 

Quebec strgn..,. 


24* 

24% 

9 

9 

2^4 

8J24 

38* 

. -3B 

10 

10 

27 

26% 

38% 

38* 

7 

6% 

20* 

20* 

35 

' 53* 

13 

13% 

1.95 ! 

1.95 

67 

67 

16 

16 

13% 

137} 

14* . 

14% 

2.86 ; 

2.85 


HOLLAND 


Jan. 19 


Price 

Fla. 


+ or 


Buhrmann-Tet 



Ennla. ! 112 1 -0.5 


Holneken 


74 
68 [ 4-2 
60.41 -OJI 
15.6, -ai 


126.41 
345 
137 J 
390.4, 
137 l 
130 * 
630 


-l 
-1-4 , 


+0.6 
+ 5 


Andelsbanken^.. 
BalUcaSkand— ..j 
CopHandalstMuik 
D. SuMcertab... + 1 
Dansko Bank...... 1 

East Asiatic. 

Forende Borygg.l . . 
For anode Damp.) 487.4: — 1 

GNTHldg ; 274 

JyakeBank ‘ 186 . . . 

Nord Kabel _i 165.6; +1 

Novo ind ;1.400 ; 

Paplrfabrikker...' 87 
Prlvatbankon„.„: 


11 


Int-Mullar 

'KLA! | 

Naardc's ... m 

Nat Nad cert. 1 

Hod Crod Ban k> 
Nad Mid Bank,...^ 
Ned Lloyd— 
OcaGrlntan..... ..! 

Om moron (Vatu.. 1 
Pakhoed : 


6.6' ■ i — 0.4 

87.7; +1JF 
2B.a +0.4 
109JJ +0^ 
32.® —OJS 
11 GA\ -~OJ3 
132.5, +1A 
72^i +3.6 
.29.6; +0.2 
4E.& +1J 


AUSTRALIA 


JAPAN (coathnetl) 


V iri j 


Jan. 19 Uust.2 


A HZ Group 

Acrov/ Au*t~ , . 

Ampol Put. J 1.66 

Assoc. Pulp Pap J 1.70 

Audi moo 

A ust. Cons. fod.. 

Aust Guaranty... 

Aust. Nat Inds J 
Aust. Paper.. 


Bank NSW 8.80 


4^B 

L5 


0.10 

1.68 

2^0 

2.98 

2.08 


1.66 

2^2 

2^5 

;i.is 
2.40 i 
4.8 


4ror 


1 \ Jan. 19 


Kubot*. 

W^^, A ...J.3T0 


Blue Metal 

Bond Hldgs. - 

Bocal-.- 

BTville Coppa/i: 
Brambles Inds.,.. 

Bridge OIL* 

BtlP.—, ...... 19.20 

Brunswick OU«.L! 0.18 , 

CRA. — ... 2.65 j 

GSR~~ t— J- 3i60f ; 

Carlton ft Utd-; J. 2.30 | 
CastlemaineTYs.! • 3.57 
cfurro/i 

Do. Opts 

Cockburn Comt-I 
Coles (OJ). 


Kyoto Ceramic... 
Maattatianull!!:U| 

SSS&s::::::::: 

-aw M a racial .... 

-0.01 Marm:..— . 

-4J.1» Matsushita 

-0JB2 M'taEloo Works. 
+ 0.94 M'tllshl Bank-..- 
iWWshiCofB^.^. 
+'0JK NrtJfsW BopLuZ.. 
Iom M-btahim 

SBSaBoi.:;ES 

•J8S assssssa 


price 

Yen 


342 


1 .388 
826 
866 
328 
699 
992 
;1,14Q 
579 
493 
623 
326 
446. 
253 
34S: 
636 
410 
524 
1,000 
710 
402 
1,030 
070- 
1744, 


Phillips.- 

Rljn-Schelde 


21.7/ 

33^ 


+0^ 

+0.8 


137.' 


S. Barnndsan... 
Superfas 


495 : 

234.4, 1 —1 


FRANCE 


Jan. 19 


Pries 

Fra. 


+ or 


Emprant 1873' 1,9201 —30 
Emprunt T% 1875: 6.0S5 +56 

CNESlt 2,718 -22 

Air Liquids : 455.1! —9.9 

Aquitaine 155.1. —1.2 

Au Prin temps 120 • —1 

BIC 390 

Banq* Rothschlld!2lB.S^i 


Bouygues 
BSNGarvals .... 

Carrefour 

Club Med iter... 

CFAO 

CGE 

CSFiThomsoni 


1,096. -10 
1,300 —36 
1,5751 -50 


520 

564 

[WJ.6* 


-a 

—26 


Ranger Oil 

Reed Stenhs A... 

Rio Algom 

Royal Bank 

RoyalTrustoo A.. 

Sceptre Res. 11* 

Seagram 66% 

Shall can oil ■ 17% 

Steel of Can A....1 29* 


8* 

10* 

37* 

25* 

14* 


B* 

10% 

37* 

25% 

14% 

12 

66 

17* 

29* 


Teak ■ ; 

Texaco Canada.. 
Thomson NawsA 
Toronto Dom Bk. 
TraneCan Pipe . 
TransMntn.OilA! 
Utd. Sisco Mines. 
Walker IK) Raa... : 
West coat Trans.. 
Weston [Gem 


10 

291| 

22 l a 

29% 

23 
10* 

6% 

20% 

S'* 


97« 

30% 

2ft* 

29* 

23* 

10% 

6% 

20% 

12% 

33* 


AUSTRIA 


Jan. 19 Price 1 + or 


Creditanstalt 

Landerbank 

Perl mooter- j 

Semperlt 

Steyr Dallmer-.. ■ 
Veltseher Mag; ■ 


220 • -1 
195 | *a 

259 

89 ' -2 
171 -2 

207 ■ —a 


BELGIUM /LUXEMBOURG 


Jan IB 


Price 

Fra, 


+ or 


ARBED 

Bang int A Lux... 
Bakaort B,. ....... 


GBLiBruxU— ...... 

Gevaert..„ 

Hoboken 

lnt*reom_. 


1,094. 

3,960 

1,490 

1,260. 

162 

1,800 

3,710 

2,315 

2,380 

1,308 

1.660 

2.560 

1,340 


Kredwtbank. ... *.110 


Pan Hldgs^- j 3,500; 


-10 
+ 8 
—9 
-10 
-60 
-35 
*10 
- 4 
*25 
—5 
•'■20 
*10 


Cle Ban calro .. 
Cia Gen Eaux... 

Cofimeg 

CCF ... . .. . 

Orausot Loire.. 

CFP 

DNEL 

Dumaz.. - . ... 
Gen. -Occidental. 


210 

183 

300.5 

118.6 
163d 

58.5 

129 

40.7 

1,391 

414.5 


+ 6 
+3 
-11.3 
-0.6 


-1.0 
-5 
+ 0.7 
+ 1 
-0.5 


Imotal 

Larfargo 

L'Oroal 

Leg rand 

Machines Bull... 

Matra 

Mich el in B 


84 1 
278 • 
775 ‘ 
1,528. 


-1 


-5 

-12 


Moet-Hennesey 587 
Moulinex - i 68 


27.5 -0.1 

1.215 

688 I -7 

t ~ 13 
I -02 

Pechiney .. . ...ilQ1.7g] 
Pernod Ri card...: 286 . —11 

Perrier 147.5| —0.5 

Peugebt-8Jk 181 1 —22 

Poclain- • 146 .91 -2.1 

Radloteoh 226 

Redouts ' 848 


-18 


Rhone-Pouienc .. H3.6g< 

Roussei-Uclaf • 261 . 

St.Gobain 152.3s 

Skis Rossignol....- 545 

Suez 331; I 

Tel amech Elect J 983 ■ 
Thomson Brandt 1 252 g 
Valeo 824.81 


—7 


-2 


-16 


+ 0.5 


GERMANY 


Jan. 19 


Price ' 
Dm. : 


+ or 


AEGtelef. I 44.21 +1.2 

Allianz Vara., ( 42B i —3 

BASF 132.3 +1.4 

bayer. 1 iia.S, +oji 

Bayer Hypo 1 Ml. 6 +1^ 

Bayer-Verefn • 277 I 

Brown Bovorl ....! 216 i 

Commerzbank.. 1 130.6; +1.S 

Conti Cum ml 46.3. +0.6 

Daimler Benz ; 979.81 +1J 

^ - nan ' . t 


+2 
+ 1.5 
+ 1 
+ 3JB 


240 

141 


Degussa 

Demag .. 

D'sche Babcock.; 179 I 
Deutsche Bank...) 270 J’, 

DU Schult-- • 146 ' 

Oresdnor Sank... 130.5i 

GHH 211 \ 

Hapag uoyd 60 ! 

HoechsL ilK^xr 1 


*1 
+ 2 


+ S 
+2.9 
+3.5 
+ 0.8 
+ 2,6 
+ 1.6 


23 , 
386 | 
110 | 
176.3 
188 | 


138 . 
181 
58 • 
54.51 
311JI, 
54 

122 1 
144.7 


+ 1J 
+0.1 
+09 
+08 
+ 0)8 
+ 2 

+ 2.5 
+ 1.5 
*0.4 
1 A 


Hoaseh. 

ann |P; — j 

Kali und sabc!"!.”! 

KarstsuJt — I 

Kaufhof- 

KHD 

Kloeekn+r 

Krupp. 

Unde 

Lufthansa 

MAN ! 

Mannesmann „...| 

Mercedes Hlg.,...l 

Matallgesssll I 254 —1 

Muenqh Ruck— J 670 . 1 -+ 10 

Prsus«*g.„„„„,.,' I97j2i +12 

Rhein west Elect I70js). + i 

Rownthal 1 275 , +3 

Sobering 276.6; +z^ 

Siemen..... 205j 

Thyssen.. 1 73,6l 

Varta 172.51 

Veba ■ 187.3! 

Veraln-West 269 ; 
Volkswagen ; 131.3 




H 

... 136 -0.2 

81.8; +0A 
72,8 +0,8 
284 • +1 
. 162 • +1JS 
129 . 

vmf Stork 

VNU 

Voiket-Stwrin... 
West Utr Bank. 

.. 43 • 

62.| ; 

. 28.3 -02 

74.5[ +1.6 

ITALY 


Jan. 19 

Prlea! +*r 
' Lire — 

Aesieur Gen 

BancaCom'Je.. 

•144,875 -1,025 
.36,350 -.140 
133 -6 




Flnslder. 

invest.. 

Italcamsntf 

• 34 • • +0.25 
2,855 —45 
36,750 + 1060 
120S .. 

Mdntedlsonc .... 

Olivetti 

Parefli Co ... . 

Pirelli Spa 

Snla Vlscosa. .... 

154 -1.5 

. 2,520 -45 
2,465 -20 
1.270 -i41 
645 —33 
17.100 —200 

do. Prof. 

14,300 -393 

NORWAY 


Jan. 19 

. Pries ■ + Or 
(Kroner: — 

BergensBaitt .. 

Borragaard 

Credltbanto 

115 

132.5 +2.6 
140 I +1 

49 : . ... 

Kosmos 

Norsk Hydra 

Storebrand 

430 : 

406 -• +1 

246 , ....... 

SWEDEN 


Jan. 19 

Price , + or 
Kronen — 

AGA 

219 i —3 

Alfa.LavaL 

ASEA- 

-213 ■ 

178 ; 

Atlaa Copco ...... 

565 — 5 

134 

Collutoaa 

28 2 —ft • 

Electrolux B : 92 - —1,5 

Eriown- - 224 ■ —4 

EneiteCFroef. 173 ; +g 

Fagerata ;.15B —2 

Fortia(Free) : 94 * a 

Mooch Dom ....-159 — s 

Saab-SXama 136 a 

SanovUdFree) — 230 — J. 

Skandia 575 —3 

Sk&n Entkilda ...' 265 

SKFB ; ISO : -1 

8t Kopparberg . 1 340 
Sven Handelsbn . 136 — 1 

Swedish Match 120 ' 
VohnHFree) ..I 164 _a " 

SWITZERLAND 

Jan. 19 phiI*™ 

' P*. i 


{ . 4oiflllNTppon Gakkr.i-.U 

0.68 J JjlPPOB 

0.46 1 Nippon Oil, J 

1.29 ! +OJ1 NlpponShfnpan^ 

I'+P* NipponSUlran. — -1 

Crusader Oil... 6,8 —0.2- NtsshinElour^-..— 1 

Dunlop. .j 0438 — OJK Nlsshirt Steel.. 

Elder Smith GMi-3j»5 i —0.15 Norm ur» 

NYK,...:.-..^..-! 

1 Olympus-. — 

Orient-.—^. 

Pioneer— — — 
Renown^..-..-.— 
Rlqoh.^-..-....^,. 
Sanyo Sect..:.-. 


■for 


■ -<r. ■ • 

•' - -t; 


*2 

-2 

-40 

-1. 

; +l 


+12 

-20 

-l. 


-a 
s 
— 1 


~8 


Jones (D1 -.1 1.66 

KlaOraQoM,... ’ 0.11 


^4) jfi { feSS^Prefab": 


Leonard Otf_ J 0.40 | - 


MIM 2.88 

Meakatharra Ms. 3.0 

Meridian Oil- f OJBO 

Monarch Pet......i 0.15 

MyerEmp- : 

Nat. Bank— 

Nows 

Nicholas Int — 

North Bkn HIJJ. . 
Oakbrtdge 


+O.03|Shls]edo 


-0/1 1 Sony (3,670 


Pan Pacific 

Pioneer Co 

Queen Marn’t Q. 
Reddtt ft Coin. .. 


1j47 

2.70 

Z«S 

1.3S 

2,47 

1.75 

1.00 

2Jt 

0^0 

1.55 


+OJ! Stanley^' 

Si S^omo ■Marino- 

TaiSboP ham-.; 


834 

538 

166. 

864 

.309 

1,020 

1,480 

l -ZSS 

802 

628 


262 

762 

798 

856 


362 

299 

595 

-260 


+3 
’.+4' . 

-10 
-1 
+ 10 




+4 

—7 

-a. 

—1 

-7 

—40 
-20 
-+20 
+2 
— 2 
-7 
+ 1 
—18 
+2 
+ 10 
+40 





■■+1 

-15 

+2. 


I* 

- 


OJJ1 i 
2.25 


■-5.- 

-14 


Sleigh 'HCj 


Spargos Expel. 
Thos. Natwida., 

Tooths. 

UMALCons — 
Valient Consdt... 
Waltons. 


Woolworths. , 

Wor maw- inti.... J 


620 : 

rrlTaJkeda jl.020 i ... 

Telkoku Oil... i 7B5 .I „ 

t ^-0.1 itbsv.....' 446 r-r 

+ ojn I Toklo Marine • 485 

Tokyo Elect.Pwr.‘ 923 

TDKyoGas •: 

а. ao , Tokyo Sanyo 1 

б. 00 ! —aw Tokyu Corp ...... J 208 i v ..i— 

* •" — 0.05 Toshiba .....:...:.. . 376 j - +2 . 

-0.12 TOTO . 417 ] - — ♦ - 

Toyo Seikan 4ial +1 • 

jIom Toyota Motor 991 l- +6 

Victor... ...... >2.560. i vT-Ji 

Waooal _ : . 773 f +tt 

"" — Yamazakl 561 'I-jks-.:- 




115 

463. - 


1,12 

0,45 

0.35 

5.47 

2.20 

1.88 

0.18 

O^S 

3J63 

%02 

1.67 

2,75 



>7 


•*rr-- • 


hOJtt 


j.+0, 


HONG KONG 


Jan. 19 


-I 


Price •+■ or 


H.K.5 — 


+ 0.1 


+.08- 
+ 1 
+ 0.1 


Cheung Kbng^.f 21 

Cosmo Prop ) 2 

Cross Harbour ... j 11,6 
H«nff Seng Benid 127 
HK Electnc — 5J7 : 

HK Kowloon WtV 6JI 

HK Land. ) 9,36 

HK Shanghl Bk_i W.8 
HK Telephone— 1 . 29 

Hutchison Wpa.J 17J , 

JardlneMath 1 183 > +0.3 

New World DcVni 437 r‘.+038 
2*e** Trust Bk_l 530 I +036 

|HKPrapS~ J 836 | +036 

Swire Pac A....: J 113 ' 

wrieefk Hard A-* 6.6S 

Wi«*Tfc Maritfei 630 ] .. 
World rnt HndgsJ 2.60 1 ...I.:.. 


+83 

+03 

+0.3 


Yasuda Fire !. .-245 i ,+3 w • : J*i C 

Yokogawa Edge. _650 I Vto ^ ; 


| Prtoaj 

... -.ft'? 

:+ or ■ 

BouatoaaBhd .2 
Cold Storage 

DBS— 

Fraaorft Neave _ 

Haw Par ; | 

Inchoape Bhd— .! 
Malay Banking'.. 
Malay Brew.....:,. 
OC8C1: ... 

Si mo Derby S.'.... 

Spa/te.'nw— ...... 

UBO-..:-. 

l 

+%» V**' 5 

+OJ2 
■ +0.19 

I-. +0.IS • ft. ’ i_tT 

+D.11 - 

+«•« * . ! 
its- ft* 


SOUTH AFRICA 


Jen. "is 


1 Rand-! . — . 


.+0.16 1 Abereom UL, „ 
AC ft 


43^_±0,B ... 

^ - fl.76| • •• 

Anglo Am ^r.^T153'-: WJ^S- 

to Am .Gold J 91... " +-1J8 


JAPAN 


I An g to An P/np;;, S.Soli.. _U-. 
ffarkwRand...^ 1036' " 


■Jan. 19 




908 

683 


+ 11 - 


445^;. +2'- 

888 "-2 


_ _ 

, reli 7.^,i,.^j' 387'4' +0-7^ : 
Its ^ ■+2'* • " 

1 Driefontefti — — 38- i -f.O J* 
re.Gftdd«U..:^I 37.80i ; • 

:Gtfd-ttMcta SAvi:OT,jJ; ' 
HlflhveW - 

urf'"- ! . v --I- - - 


- 377. 

-4 

438 t .+B 


Rwyilira^-.v.r— 4 l — ?■* 
■>. +0J* 


-1:020- 1 *29 

——4: BOO £ .... - 


. 


ISA J 


■ .A0r r +OJZ 


,(6,800 r + 20'| 


Brawn Bovorl.. ,. 

Oba-Gelgy 

do /Part Certs;. . 
Credit Suisse..... .. 

OeHtrcwatt. 

Fischer 1 Quo) „... 


I Hitachi 


633 
54 a 
668 


.■ii - 1 


64Q1 -5 . , _... 

1,070 Hitachi KCKL-...i - SIX i —7. 

1,280’ +80 Honda — J, ' 78=t f ~r , 

9751 +5 HoueafB6d,^....,130O 1 :.. 

1370; +5 Hoy* 798 ' +/* 

2,340-: ltoh(CI.,...».;..^[. .S33 | +* 

■*■1-5 500. -1 ito-HariW.w* : 430 

+ 9'2 >250 Ito-Yekado ,;%D20 .-*10 

| |SSS»* W0 - 1*250 >28 JKCS'.v.^.u. • S52 -• ,+S .. 

fjeimoii ijtfflr +10 - JuseK“"::d%oS : 


■■■ T- : l - .. >. - .V\ • 1 .-.v * • • 
-%t .r- 


AesWti^l.'.^r 


■--.■MVU IjnU 

£46.5; +3.3 I Land!* ft Gy r 1,1001 

* «Wle. 


+25 


+33 
+ 1.7 
+53 
+ 1.1 


l 


+ 1.7 


Oer-Buhriie .• 

PiralJJ “ 

Sanaoz (B* 

Sandez iPt Cts) 

Schindler iPtCtl) 1 

Swissair _... • 

Swiss Ban to. 

Swtasvelksbk - 

Union Bank. ' 

Winterthur L*37B> +68 

Zurich In* 


3B& : 

Kao Soap.-.-. >857 

KBshtypma-.L....;. .860 


i* Amar^...^ .'33W- 


+36-. 


3,200, 

^ r +1 5 I Kirin, -w 4 480:l.>^ 

5 ‘Koiaiyo™. M .C 990 

Komatsu 462 r . . 

Komatsu FW*..: 610 : r -J4 
Konishrotfau.^.i 668 


43851 
816 
241. 
69B| 
• 311: 
«,48S 
S6CT 



-+OJSB 


r Sooz*Cru*„^ . 
faWtjGoaa 


,-aw 

J+OJ0 

?A76i>'i+0.a- I 




+6 


■ ^TornoBBn--CrAabl ./tor 1 - 
Jii. 

JtoSfOK. ibe 69 Jwuwo 


+ 126J 
— 5 


^MOTBS-Prioi* w^we ;. «•* ■ 


*6 a dWdtoS; ^B^aolp iaau^» 


'S 


■’i 


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' I 


20 1982 


: uitipaBlBt fflrf: Marfats rr ’•? ^ v ' - ; > 


COMMODITIES AND AGRICULTURE 



'IIK stand s firm Another zinc EEO FARM "*e™G 

rtn Geh n„iw sn f ,tei : Price regime decision soon 

uu nsn policy cuts price -.-2T 


BY LARRY KLINGER IN BRUSSELS 


BY LARKY KUNGBt IN BRUSSHS 

AS THE project grows for a Cc 
drami-oat delay before serious fia 
negotiations can. be. resumed on dt 
est gMiflhin g a Common Fisheries nn 
Poccy, Britain yesterday de- pjs 
dared that there was “no way" d< 
that its coastal waters would he sp 
be opened np to EEC-wide fish- an 
.ih£.&f there was still no agree- . 
ment when its transitional EEC ,-cri 
*pee8saon arrangements expire Bi 
at the end of the year. fle 

Mr Alidc BachanaftSntrth; the 
British! Mrrtiete T of State -for ■ 

, Agriculture and. faeries, said 
in . Brussels that, tf there was no 110 
agreement before the year-end I« 
deadline,, “present conditions" , ' 
woidd r emain jn place. . no 

. There was “no way” in which- tot 
a- 1 British Government . could ---inn 

- aKow uncontrolled CogHgnnity- eai 

wide fitting in UK waters, he Bo 
said. There was no project that ths 
“any British. Government could act 
tolerate it." . • . ha 

- - The- CFP negotiations have CF 
already dragged on for nearly a 

.six. years, and the. last two pos 


Councils of Faeries Ministers 
bad to be cancelled because 
dearly no progress could be 
made. Any further delays would 
place the negotiations perilously 
dose . to the end of Britain’s 
special Id-year accession 
arrangements. 

Speaking in response to 
.criticisms that the problems of 
Britain’s distant-water fishing 
.fleet were being ignored by his 
Government; - Sr Bnchanan- 
Smith also confirmed t hat o ver- 
aH negotiations on a CFP are 
unlikely to be resumed for at 
least another two months. 

( The European Commission is 
not expected to produce its 1982 
total batch and quota proposals 
until the end of next month or 
early in March, and Mr 
Bncbanan-Smito marfo dear 
that no discussions on w hat 
access other countries might 
have to British waters under a 
CFP could take place without 
a parallel t -discussion on 
possible quota share-outs. 


World farm aid 
funds agreed 


lir^cord forecast; 

xt jjjr John Wkics ifi Zurich 
TES5 WORLD eereal crop Is 
iSody to reach .ft record level 
of a&nost i,5bn tonnes in the 
"crop-year 1981-82, "according to 
report issued by the Inter- 
national ' Monetary Fund. The 
IMF predicts .peak production 
figures of . about -450m- banes 
for wheat, 767m tonnes of 
coarse grain ,274m tonnes 
(milled basis) of riee_--v. 

The ■ overall increase in total 
world cerpal "supplies is saifl 
to be caused primarily by 
higher production in the main 
exporting countries, the' UiL, 
Canada and Aastrafit 
This, plus increased crops in 
Asia^ Africh ahd Latin America, 
are seen as “more .. than 
enough" to dflEset faas in iao- 


8Y JAMES BUXTON tt* ROME 

THE OECD and OPEC countries 
have finally resolved "two years 
of argument on replenishing the 
capital of IFAD, the Home-based 
International Fund for Agricul- 
tural Development, which lends 
mainly to projects benefiting 
small . farmers in . developing 
countries. 

-IFAD’s capital is to -be in- 
creased from about $lbn to 
$2.1bn through the contribution 
of S620ra by OECD states, $450m 
by OPEC states and 830m by 
developing country members. 
Taring into account income 
from interest, the fund will be - 
able to commit a total of 
$1.35 bn over the 1981-83 period, 
in addition to the $900m com- 
mitted up to 1980. 

However, the funds at the dis- 
posal of" IFAD, which was set 
up in 1977 partly at the insti- 
gation of OPEC., will be declin- 
ing in. real terms. Originally, 
member-states were asked to 
contribute $1.35bn in new capi- 
tal, rather than the $l.lbn 
agreed. ... 

Iran, which originally made 
the largest Single commitment 
to IFAD, failed to pay up more 
man 'half its. original pledge. 


and is not contributing to the 
replenishment The Reagan 
Administration in the UB. 
scaled down a previous commit- 
ment to the replenishment of 
IFAD’s funds. Negotiations on 
the capital increase were fur- 
ther complicated b ^arguments 
over the relative share of the 
funds contributed by OPEC and 
OECD. 

When IFAD was established 
it had been intended that each 
group of countries’ contribu- 
tions would be equal. In the 
event the OECD countries are 
- now contributing 56 per cent 
of .the total agreed increase, 
and OPEC 41 per cent, 

IFAD is primarily a financial 
institution which provides 
money for projects being imple- 
mented either by national gov- < 
e rumen ts or other aid agencies. 
Its aim is to raise food produc- 
tion and living standards in 
rural areas and thereby help 
the world's poorest people. 

In spite of having already 
committed ?196bn in loans, 
only $l40m has been disbursed, 
owing to the slow speed at j 
which aid projects normally get 
.under way. ! 


By John Edvards, 

Commodities Editor 

ANOTHER West German zinc 
smeller. Freussag, yesterday 
cut its European zinc producer 
price by $75 to $875 a tonne. 
This followed the price reduc- 
tion to. $875 announced ' by 
Metall gese-Hscb aft on Monday. 

Other za nc producers, how- 
ever, are believed to be reluc- 
tant to follow, especially in view 
of the recent reversal of the 
decline in TJ.S. producer prices 
and the firmer tone on the 
London Metal Exchange zinc 
market 

The cash price for zinc on the 
L ME closed £7.5 higher yester- 
day at £430.5 a tonne, in spite 
of news of further moves to 
settle the long running strike at 
Tara Mines in Ireland. 

Following reports that the 
mine’s bankers bad set a dead- 
line for settlement of the stop- 
page, which started in July, the 
Irish Labour Minister ordered 
the Labour Court to reopen 
discussions on the dispute 
today. 

Lead prices advanced 
strongly yesterday, encouraged 
by an upturn in copper and a 
general belief that the market 
had been oversold recently. 
Once an important chart buying 
point was triggered values 
moved up rapidly. Cash lead 
dosed £12.25 higier at £340.75 

Copper was boosted by the 
rise in gold, but other markets 
were easier. Tin fen in spite 
of a recovery in toe Penang 
market overnight with the 
Straits tin price gaming JI$1. 10 
to M534.90 a kilo. In London 
there is increasing concern | 
about the threat of an acute , 
supply squeeze developing in 

late February. I 

• 

Jamaica bauxite 
sales down 

KINGSTON. Jamaica— Jamaica's 
bauxite sales last year fell by 
an estimated 800,000 tonnes, but 
alumina exports increased by 
100.000 tonnes, Mr Basil Buck, 
Junior Mining Minister, said. 

Mr Buck said bauxite exports 
during. 1981, reached an esti- 
mated 5_2m tonnes, compared 
with 6m tonnes the previous 
year. However, the export of 
alumina rose from 2.4m tonnes 
to 2.5m tonnes. 

Total bauxite production was 
ofiicialiy estimated at 11.5m 
tonnes, compared with just 
under 12m tonnes in 1980. 

Mr Buck said production this 
year would not .be better, but 
be expressed confidence over a 
revival in the industry. 


EUROPEAN Commission pro- 
posals on guaranteed farm price 
rises for the coming marketing 
years win be presented, prob- 
ably by the end of next week, 
whatever the. outcome of 
Monday’s special meeting of 
ETC Foreign Ministers. 

This was confirmed yesterday 
by Mr Poui Dalsager. the Agri- 
culture. Commissioner, who said 
that there was a limit to toe 
time She Camndasaon could 
wait if the ETC Agriculture 
Ministers were to meet their 
April 1 deadline to agree on a 
new price regime for 1982-83. 

The Commission decided on. 
Monday to withhold its pro- 
posals following last week’s, 
failure of -the Foreign Ministers 
to agree on guidelines aimed at 
reforming the EEC's budgetary 
and 'agricultural policies. 

, Mr Dalsager would not be 
drawn, however, on either the 
•content or- scale of toe Commis- 
sion's. proposals, which are 
widely understood to suggest 
average price rises of up to 9 
per cent, the highest in recent 
years. 

■ Similarly. the ministers 
attending yesterday’s Agricul- 
ture Council in Brussels refused 
comment on “hypothetical " 
proposals. 

On the other baud, unofficial 
reactions to toe Commission’s 
postponement ■ were mixed. 
Countries heavily dependent on. 
agriculture - but - standing 
towards <• toe -margins of 
budgetary debate, such as Ire- 
land, were obviously dis- 
appointed. 

Others, such as Britain and 
West Germany, showed little 
concern, indicating that they 
thought there was. still plenty 
of time to agree farm price 
levels before toe April dead- 
line. 

There were even indications 
that West Germany might 
prefer the delay so that its 
current industrial wage negotia- 
tions would not ran in parallel 
with the farm talks! The fear 
is that a substantial industrial 
settlement might increase 
farmers' expectations to levels 
which could then not be 
satisfied. 

Commission officials, who had 
been set to present their pro- 
posals’ at yestf -day’s Council 
meeting, said that an extra- 
ordinary Agriculture Council 
might be called either before or 
after the next scheduled meet- 
ing on February 15 and 16 to 
give the ministers extra time 
to study' the measures. 

France’s controversial plan to 
give its farmers an extra £500ra 
in aid came under further 


attack yesterday with Mr Peter 
Walker, toe British AipToriture 
Minister, saying that aid on this 
scale was a “ preposterous 
affront ” to the principles of 
the Common AgricaltiHe Policy 
(CAP). 

Mr Walker, who is agon head- 
ing toe British agriculture dele- 
gation after his six-month 
tenure as President of the EEC 
Council of Farm Ministers, said 
after yesterday's Council meet- 
ing that toe French scheme, 
even if portions of it proved to 
be legal, threatened to. disrupt 
the CAP by possibly forcing 
others to emulate the French. 

• He refused to be drawn, how- 
ever,' bn whether Britain might 
be contemplating a big increase 
in farm aid but did not com- 
pletely rule out toe possibility. 

He said that to say “ we axe 
going to do such-and-such ” if 
the French go- ahead illegally 
would only undermine toe 
British position over the issue. 
Moreover, even if larger coun- 
tries sqch as Britain and West 
Germany coitid devote extra 
funds to such aids, smaller coun- 
tries simply could not afford to. 

France maintains that the 
latest aid package is entirely 
legal under EEC law in that it 
contains no direct income aids, 
and Mme. Edith Cresson, the. 
French Agriculture Minister, 
said that her Government would 
comply with the European Com- 
mission’s request to provide 
full details of the scheme two 
months before the planned aid 
was paid. 

Mr Poul Dalsager told the 
Council that the Commission 
had rejected France’s initial 
submission because it! lacked 
sufficient detail and hid 
urgently requested France to 
provide further information. He 
said after the meeting that the 
Commission hoped to have a 


reply 41 very soon and then could . 
act on the matter in the near 
future." 

France’s latest package is 
indeed complex and is directed 
towards various farming sectors, 
especially the poorest, unlike 
. the £400m across-the-board pre- 
election package grained by the 
previous government headed by 
M. Valery Giscard d'^staing.' 

Britain, and more recently 
West Germany, have been toe 
foremost critics of French 
pohoy, but are sow being sup- 
ported in varying degrees by 
such traditional aMes of France 
as Italy, Greece and Ireland. 
Fanners of varions nationalities 
have Seen pressing for simils- 
aid only to be told that their 
recession-hit national economies 
could not bear the cost. 

Mr Walker insisted that toe 
issue remain on the agenda for 
the next scheduled Council 
meeting on February 15 and 16. 
He said that in Britain’s view 
“ quite a lot of toe French 
scheme appeared to be illegal 
and that, in any case, because 
of its scale the whole position 
“has got to be looked at.” 

• Meanwhile, the Commission 
bas asked the Dutch Govern- 
ment for more information con- 
cerning its plan to eliminate 
its natural gas subsidies to its 
glasshouse industry. 

The Commission bas declared 
that it will take the case 
before the European Court if 
toe Netherlands did not agree 
to eliminate the differentia] 
between its horticultural gas 
price and its higher, wider in- 
dustrial price by October 1. 

The Commission said that the 
Dutch Government in its reply 
to Brussels, had not completely 
ruled out .toe possibility but 
that its suggested plan seemed 
to faD short of the Commission's 
ruling. 


Higher cocoa levy sought 


BRUSSELS — The EEC wfll 
propose doubling the Inter- 
national Cocoa Agreement levy 
to 2 cents per pound at a forth- 
coming meeting of the Inter- 
national Cocoa Organisation 
(ICCO) council. EEC officials 
said it was not yet clear 
whether the 2 cent figure, which 
was agreed at an EEC commodi- 
ties experts meeting here on 
Monday, would be acceptable 
to other countries in the agree- 
ment. but the subject would be 
raised at a council meeting next 
week in London. 

The levy increase would apply 
from October L 1982, according 


to the EEC proposal. 

On a possible $75m loan to 
the Cocoa Agreement's buffer 
stock offered by Brazilian banks; 
negotiations on terms such as 
interest rates and security were 
still gorng on with the banks, 
and the EEC experts had 
adopted no definitive position 
yesterday pending fuller dis- 
cussion of the conditions in 
London. 

The EEC experts had decided 
to propose alterations to the 
quotas allocated to various 
countries and types of cocoa, 
which would lead to a better 
share out of the market. 


Beef import 

quotas 

fixed 

By Larry KHhger in Brussels 


EEC AGRICULTURE Minis- 
ters- yesterday agreed, on 
1982 import quotas for- cer- 
tain types of beef for food 
■products after France and 
Ireland dropped ftdr long- 
standing objections to the 
scale of the European Com- 
mission’s original proposals. 

Britain, which Is the main 
beneficiary of these cheap 
Imports, welcomed the agree- 
ment Officials representing 
Australia, which along with 
Argentina is : toe main 
exporter to the EEC, said 
they were satisfied that last 
year's levels had been main- 
tained even though they had 
wanted an increase. 

The ministers agreed - to 
maintain last year's level of an 
.overall 60,000 tonnes !! of 
imports under the so-called 
•“ manufacturing beef balance 
sheet,” with 30,000 tonnes of 
high quality meat to be 
imported duty free and an 
equal amount of lower quality 
meat to be imported at 45 per 
cent below normal dirty, which 
is the minimum require- 
ment under toe; General 
Agreement on Tariffs and 
Trade (Gaft). 

Britain also won a conces- 
sion under which toe tariff 
level would he reviewed in 
six-months’ time to open the 
possibility of a reduction if 
toe exporters find It unpro- 
fitable to fill their quotas. 

The French, supported by 
the Irish, had argued that 
the overall quota. should be 
cut to 45,000 tonnes and had 
opposed any provision for a 
tariff review. They said that 
because toe EEC was self- 
sufficient fn beef, “ prefer- 
ence” should he given to 
Community produce. 

Meanwhile, the Ministers 
also approved the 1982 pre- 
ferential arrangement for toe 
import of live veal animals, 
mainly from Yugoslavia. This 
comprises 210,000 head over- 
all. 180,000 for Italy. 20,000 
for Greece, with the destina- 
tion of the remaining 10,000 
to he decided later. 

The agreement also pro- 
vides, under a complicated 
formula on which sections of 
the quotas are met, for a 
possible increase in the over- 
all quota by 25,000 head. 


BRITISH COMMODITY MARKETS 

wicf MFTATC ■ ' tbn» months £348.00. 50.00. 49.0 

. IVILIAU? • 48 -SO. 48.00. 48.00. 51-00. 51.50. 51.0 


n^a nwtnl prices were mixed on 
tire London MstaJ Exchange. Light buy- 
ing end the m on Cantex 

vaw : -copper mo ve ahead to ' £890 
-' bafoTB Closing at £888. wWto renewed 
shorS-l covering (died zine to -OI30.5, 

- 'slaw £438: die Tara meeting wn 
brought tomatf to yesterday to an 
. atnanpMB end -the tong labour dispute. 

. Lewi - mbs finally £353 after the market 
. mowod through an. appa rent chart point 
. a* £345. AliMXfinioro dosed at £812.75 
; and -NJckel BjaZS.:-. Hedge setting, 
-depressed due* months Un so £7,310 _ 
wtth cash metft akrefog «t CB.4GQ. . 

' . L eunl orf’p.m. 1+ or 
COPPER Official — jUoomctel -r . 

c £ j 1 i . 

HJgbOr daH — J— : _ ■ 

Cash 7 866-7 +fi.25^ B59-.5 +6 

' ' 3 mths SSS.B-S^rtJ 8S9-.5 1+5 
setitent' .837 !+S.S - i 

CtthodMi • • j * 

Cash J8S4-5 |+Cji 858-7 i+4 

Smooths: 888 3 +« ■ 835-6 ,+S 

Satttam't ' 855 +5 j I—. 

S. Prod ' *77-8 2 1_-.— 

Amalgamated Metal Trading reports d 
That, in the morning cash -wirebate - 
traded at £856.00, 5650, three months 
£884.00. 84-50. 85.00, 85-50. 86.00. 
Cathodes. - three, months £883.00. Ke*: 
higher garde,- three-. marttbs £88S_5Q. 

87.00. -87^0. 88 -00; 9&JSO, 89 .00. _8B.90. ; 

Afternoon; Higher unde, three, months 
£888.00, 8850, 80*00. 90.00, 90.5D, 

90.00, 89.00. Cathodes, -cash EBSB.OO, 
three months £886.00. ; Kerb: Higher 

-grade, - these months -BB88.0D, -87-00, 
07J5O, 88JJ0, 8850. Tanxwen *8^50 
lonpBS. . • t ■ 

“X -ion. ~f+or| p.m. j+<or 
LEAD 1 Official. ! — : Unofficial -r . 


three tnomha £348.00. 50.00. 49.00. 
48-50. 48.00, 49.00. 51.00. 51.50, 51.00. 
Kerb:. Three months E3S2.0Q. 53.00. 
Afternoon: Three months £352.00. 52J5Q, 
52.00. .53.00. Kerb: Three mooUts 
£352.00. Turnover: .13.950 tonnes. 


a.m. 

TIM ■ Official 

High Grade . £ • 

Cash ; 8460-70 

3 months, 7905-10 
Settle m't 8470 

Standard 

Cash 8460-70 

-S roonth* 7906.10 
Srttfemt 8470 
Straits E. J834JO 
New York! — 


months £812.00. 11.50. Afternoon: 

Three months £81250. 13.00. 1250. 
Kerb: Three months £B12J>0. Tutn- 
. over: 6.000 tonnes. 


GAS OIL FUTURES SOYABEAN MEAL PRICE CHANGES 


AMERICAN MARKETS 


+ or pjn. |+ o • 
J . — jUnotflclal j — 

77f « j*" 

-100 i 8460-80 f-17.fi 
—11T 789O-9O0f-7B 

r“*i - 

f-oaoi 8460 -so Ui 7 .fi 

j— 117; 7B80-900U-7B 

- I 

I4.I.W — I 


Kerb: Three months ®2i0. Turn- a steadier opening was followed by 
wed 6.000 tonnes. weakening prices in Jiedesa trading. 

~t Strong comrmeeion - house buying 

NICKEL J a.m. ;+ or: p.m. + or pustwd paces to the highs, but the 

j Official 1 — (Unofficial — market later fall beck, reports. Premier 

. . Man. 


Spot 2965-70 ;-1S '2965 70 -10 

* months! 3022-3 -TJL5 3022-5 -9 

Nicks! — Morning: Three months 

£3,020, 18, 19. 18. 20, 22. Afternoon: 
Three months £3.020, S. Turnover: 
380 awmes. 

t On previous on official dose. 

* Cents per pound. * MS per fcOo. 


Tk*— MoinftKR Standard, cash E8.4S0u 
three -months £7,94% 20, 10. 05. 7.900. 
Kerb: Standard, three months £7.910. 
20. Afternoon: Standard, cash £8,480, 
three months £7.910. 7,890. 7,900. Kerb: 
Standard, three months £7.880, 7.910, 
20, TO. 7,800. Turnover: S.135 tonnes. 

7a.m. i+arj P-m. j-Fo 
ZINC Official , — JUnofficralj — 

_ i I" £ I £ I £ 

Cash. 427-5 |+17.B< 430-1 +73 

3 months 435 - JS .+» j 437-56 +R* 
S'ment.^ 427.5 j+TB — ~ 

Prl mw’tsl — I — t *42-75 I — 

Z5nd Mor ning: £427.00. Z7 j 90, 

three - months £04X0, 3507. 34.50, 
35C0. 1 Kerbs Three ottombe £435.00, 
3550. 36£0. - Afternoon: Three months 
£436X50, 36X50. 37.00. 37-50, 38X50. 
37X30.' Kifctr. 'Three months £438.50, 
37.00. 37.50. -37X50. 3R50, 38.00. -38^0. 
T ur nove r : 10^56 t on n es. 


SILVER 


Silver was fixed 0-2p an ounce 
higher lor spot delivery in the 
London bullion market yesterday at 
417.15p. U.S. cent equivalents of the 
fixing levels were: spot 790.1c, up 
11. Tc: three-month 816.7c. up 10.6c; 
sni-monxh 847.9c. up 12J2c: and 12- 
month 905.1c, -up 12.3 c. The metal 
opened at 418-422p {790-735c) and 
closed at 41 4-41 8p f787-792e). 

SILVER Bullion j+or L.M. F . ;+or 
per fixing — ■ p.m. . — 
troy oz. price j . |Unoffie'l 

Spot. 417.1&P Uj^412^6p ;-2J5 


esterdysj + or. Business' 
close 1 — | Done 


. IUA ! 

per tonne! 

January-... 316.00 — 5J»'5SB 25- 16.75 
February... 314.00 1.50151625-14.80 

March l 307.00 1 — 568.00 -08. 75 

April < 297.00 » — 1237-50-96.00 

May :... 292.50 (-O.757293.50-92J1O 

June 292X50 ,+0.25 292.00-91X50 

July. ■ 293.50 *+0.50 — 

August >297.00 .+2X0 - 

Sept. . 298. 50 i + UiOi — 

Turaoven 1,268 fl.523) lota of TOO 
tonnes. 


GRAINS 


The market opened generally un- 
changed. March and May wheat con. 
tinned being sold to dreg all wheat 
down. Barley waa not so week but 
again March and May led the way. 
New craps followed old crop trends. 
Adi reports. 


!Yesterd*ys' -for 'YestercTymHhor 
Mnth; close — ) dose ! — 


The market opened easier on profit- 
taking. reports T. G. Roddick. Prices 
continued under pressure as U.S. 
weather conditions showed alight 
improvement and the market closed 
weak. 

Vcstordys + _ or, Business . 

1 Close 1 — I Done 

i -— 

. £ • I 

per tonne 

February...; 157X50-37.5 -3.50 159.00-57.00 

April 154.6D44.7-3J0. 157.00-54.60 

June 1323032.8-2.70 155.50-52.60 

August 135.5035.0 -2.75 15B.M-J4.00 

October...,,' 135.50+5.0 —3.00 — 

Dec 134.5457X1—2.25 — 

Fe b 15 5.00-39.0 — 3.00 — _ 

Sales: 204 M07) lots ol 100 tonnes. 

SUGAR 

LONDON DAILY PRICE — Raw sugar 
£162.00 (same) a tonne cil Jen-Feb- 
March shipment. White sugar daHy 
price £170.00 [£172.00). 

Prices eased during the morning In 
quier concMions and continued to 
drrit. reflecting lower New Yorf; vaiues, 
reports C. Cxamikow. 

Sales: 2.288 (2 733) lots of SO 
tonnes. 


In tonnes unless otherwise staled. 


; Jan. 19 ' +or Month 
! 1982 ; — ago 


Metals 1 I 

Aluminfu m (£810/816 X810/S16 

FreeMkL_..... '91105/1 155 +5 ; 81125/I55 
Copper 

Cash hg'radi»_Jf859.25 +6 >£863^5 

3 riiths ;...l£889^5 1+6 i£889.7S 

Cash Cathode^ '£856.5 |+4 [£680.75 

3 mths [£885.5 i+B £885^5 

Gold .royoz I837S.S ,+3 J404J25 

Lead Cash. 15340.75 ;-12j2i£360.5 

3 mths £3 53.25 +1L7£373.75 

Nickel £3737.75 X3B78.B9 

Free mkt .255i290c. j250|90e 

Platln'mtr’y oz £260 I [£260 

Freemkt £190.75 —1.S5, 5204.80 

QuickBilvert ...6405/415 S412/41B 

Silver troy oz... 417.13p ,-0JD442.10p 

3 mths. 432.00a l+O.OS459.10p 

Tin Cash >£8470.6 .'-17.5 £8355 

3 mths (£7895 70 |£e095 

Tungsten22.il lb[5185.60 -1.8 5134.48 

Wolfrm 22X541 bs|91Z7/131 I >5120/125 

Zirio Cash £430.5 +7.5 '£461.5 


3 mths [£437.75 +9^ -£467.76 

-7 — • Producers ...[6875/950 [6920(50 


a 351-.5 I +12 

340 . J+14JBf 


i-ttJ spot-.: 
-1U 3 montl 


O.HV 

Official 

■Hot 

pjtt. 

Unoffidei 

£ 

B87-.5 

ertxw 

£ 

-4J 

-4A 

£ 

587-8 

61ZJ5-3 


■■gjL Spoti ■ I . r - Af uiiif n ftm i More ftg 

' I sswl lUnmirnr 'Tnffti £339.00, 39.90. 8612^0. 1200. T1 JO. 


Kadbc Three 



UUE-Tbruwr 96 (416) lots of 
10X500 oonces. Morning: Three months 
432X5, 33.0. 34.0, 335. Kerb: Three 
months ©*33.50. 33X>. Afternoon: Three 
months 6*31.0, 30.0, 29.0. 28.0. 27.0, 
275. XMk Three raondts £428.0, 28.5. 
29.0., 

COCOA 

Futons remained firm end within S 
narrow range. The near March 
position sh owed particular 1 strength. 

‘ Actuals business mowbied neglected 
with both producers and consumers 
sidelined, reports GiQ end Duffus. 

jYesft-dey N ■+• or > Business 

OOCOA Closa. — j Done 

March 1215-17 +85 1223-1 1 

May 1204-05 1+4X3 [1213-03 

July ZJ 1206-10 i+15 j 12184)9 

Sept 1214-15 j — 1227-14 

T -~- 1219-20 1—4X1 1 1231-20 
March..... J 1225-27 >-45 . 1243-27 
May .-J 1230-37 i-S5 I — 

Seles: 3.063 F2 . 28 Z) fats of 10 tonnes. 

ICCO— Daily pries fob Jan 19: 100.46 
(39.30): Indicator price for Jan 20: 
99.14 ( same) U.S . coots pare pound- 

COFFEE 

in Ooe «wdi early indications 
Robusas opened maupnaily lower in 
light vohrme. repona Drexal Bumaern 
Lambert. An attempt to penetrate re- 
cent Icwi failed due ts trade auppon. 


Jan M 10955 'i — 050, 10650 -0511 

Mar-' 111.70 -0.65; 108.40 p-050 

May..) 115.40 ,-OSO. 111.65 -O.SS 

■ I 11Q n HI 


July. ' 118.45 [ — 0.B8 - - 

Sep— 107.15 050 102.75 [ -0.15 

NOV-.; 110.75 -gjfli 106.70 —05 5 

Business ■ done — Wheat Jan 10950- 
10950. March 11255-111.70. May 
115.85-115.40. July 118.75-113.65, Sept 
107.25-107.15, Nov 110.80-110.70. Sales: 
15 lets of 100 tonnes. Barley: J«n 
106-35-105-20. March 108.80-108.45. 
May 11155-111.70. Sept 102.80-102.65. 
Nov 106.70-106.65. Sales: 206 Iota of 
100 tonnes. 

LONDON GRAINS— Wheat U.S. Dark 
Northern Spring No. 2 14 par cant. 
March 121.45 transhipment East Coast.' 
U.S. Hard Winter 13*1 per cent, m||- 
Jan/mid-Fab 117.10 transhipment East 
Coast. Maize: French. Jan 13350 
transhipment East Coast. S. African - 
Yellow. March 7650 quoted. Barley: 
English Feed fob. Jan 111.75, Feb 
113.50. April 115 East Coast. Rest 
unqotad. 

HGCA — locsdonal ax-farm spot 
prises. Other m ill i ng wheat: W. Mid- 
lands 110.00. Feed barley: S. East 
108.30. S. West 106 50, W. Midlands 
105.60. N. West 106.90. The UK 
Monesaiy C c e lDcien t tor the week be- 
ginning Monday. January 25 (based on 
HGCA oatouletions using five days' 
exchange rates) is axpeaed to remain 
unchanged. 


No. 4 Yesterday! Previous | Business 
Con- close [ close j done 

tract i j 

£ per tonne 

March.! 177.35-72.40 175.05-75.201 175.00-72.00 

May i 1 75.50-75. 80, 177.90-75.001 178.00-75.25 

Aug._^17&.45-78.60. 181.00-01. 10I1B1. 00-79X5 
Oct_....’1B2X5-82.40 1M.85-a5.D0[ 18550-8250 

Jan '183-00-8450 185.75^7.001 — 

Marc/U. 15650-39.50 191.05-32.00 — 

May..j.ilM.OO-92.00 192.00-9850! — 

Tata and Lyfa delivery price for 
granufstad basis whtte sugar was 
£374.00 (e arns) a tonne fob for fume 
trade eruF £272.00 (same) for emort. . 
- International Sugar Agreement (U.S: 
. cents per pound), fob and stowed 
Caribbean ports. ■ Prices for Jan 18: 
Daily price 12.65 (12.88): 15-day 

average 12.60 (12.85). 


'?345 

+05 ,6262 


3.40 ^IJOlfilC 

5.50 £12 

1.70 j — O.GS|£Il 
7.10y[— l.S) 

57 |+16 Ll, 


+ 16 l£l,175 
+4 !£ 1124.6 
—3.6 XI 1295 

[67.46c 

—1.6 6327.75 


CSBIi 


POTATOES 


[Yesto rosy's: i 

COFFEE < Close + or business 
1 — — ; Done 

■£ per tonne; 

. 1122-23 ,-10.01125-20 

March 1 1135-37 -3.5 '1138-33 

Sty 1118-19 —4.0 1122-16 

1112-13 -4.0 11114-10 

Sept — ’ 1108-10 -2.5 1212-06 

NoV._ j 2104-OS -4.0 1110X15 

January — „ 1098X13 —55 — 

Sales: .1.738 (2,097) lacs cf 5 tonnes. 
IC1 Ireficator prices for January 18: 
(U.S. per pound): Cem?. dariy 

1 2252 (122.73): 15-dey average 12356 
(124.00). 

WOOL FUTURES 

tOKQON NEW ZEALAND CROSS- 
BHEB5 — Chase fin aider: buyer, seller, 
business). New Zealand cents per kg. 
Job seller 374, 370: March. 366. 369, 
367-386; May 375, Sri. 376: Aug 385. 
388. 387: Ocz 383. 3 ». 389; Dec 393. 
397. 385; J«. 397. 3». 398-337. March 
405, 410; 406-407: May 411. 415, niL 
Sales: 68, 

■- SYDNEY GREASY 'WOOL— Close (m 
otdac buyer, sailer, business)- A “*- 

trelum cSnia ^ Man* 

4955, 4S 5-, May 503.5. 504.0. gW.D- 
8DS* July 5It5. 5120. 512.0|11.5: 
Oct 5UML 5125: 510.55105: Bee 51o.a 
616,0, 515.0: March 5200. 521 5. 

520.0; May 525 0, 5260. H5.0: July 
5285. B31 A mrtredad. Sale*: 125- 


RUBBER 


The London physical market opened 
easier, attracted fair interest at the 
looser levels and dosed puiat. Lewis 
end Pest recorded a February fob pnea 
for N. 1 RS in Kuala Lumpur of 206.0 
(2U7.0) cents a kg and SMR 20 181X1 
(182.5). 


No. 1 j 
fLSA j 

Yttf/Jl 
1 close 

Previous 1 Business 
i close - Done - 


; 


Mar 

Apf-JneJ 

Jly-Sept; 

Oct-Oeci 

Jan-Mar 

Apt-Jna.' 

JfeSS 


50.0-56.69] 

5UO-51.70 

6450-55.69' 

5JJS0-&7JB\ 

bojobim 

S2J0-63.6B 

6K30-66.Efl 

68J0-6&A8' 

72.4B-72.E0 


’SOJO-SOJO) 

50-10-51.70' 

53.50- 52.60 
57X0-57.10 
HL2JJ-6O.30 

63.50- SoJD 
66.404SJ8 
E9.SO-fi3.4D' 
72.30-72.40' 


5028 

61.90-51.10 
53JC-55.CU 
57.40-56^0 
BO JO-59. 8# 
63.7OfiS.04 
K.BD-65.70 
G9JO-S9.lt 
72.90 


Sefcs: 96 (81) tola of 15 tonnes. 
30 (48) lots of 5 tonnes. 

Physical cfos-ng prices (buyers) 
were «poz 50.76a (50.00P): P«h 51.75p 
(ssae): Much 52.00p (51 50p)- 

COTTON 

UVBJPOO.— Spot and shipment 
sales a mounted to B2 tonnes. Gradual 
increase m prices brought a few more 
tcadars TO the -martei, but many 
a wa i ted events before cammrttirg 
themselves. Scattered interest waa 
■beam to certain Middla Euiaro atylefi- 


LONOON POTATO FUTURES— ProTn- 
taking and srop-loss buying raised 
prices end encouraged further buying, 
rapods Cotey and Harper. Closing 
prices: Fab 97. OQ, +240 (high 97.00, 
tow 95.50): ArprH 119 00. +4.S0 (fcrigh 

119.00, tow 114.90); Nov 68.00, +0.10 
(high 68.00, low 67.90). Turnover: 
594 (432) tots *of 40 lonnes. 

MEAT/VEGETABLES 

SMrmFIELS — Pence per pound. 
Beef: Scotch killed sides 86.5 to 91.0; 
Ulster hindquarters 101.0 to 1025: 
forequarters 72.2 to 74.8. Veal: Dutch 
hinds and ends 127.0 to 134.0. Lamb; 
English small 79.0 to 91.0. medium 
82.0 to 88.0: Imported — ftew Zealand 
PL (new season) 72.5 to 74.0. PM fnew 
seasdn) 73.0 to 74.0. Pork: English, 
under 100 lb 49.0 to 55.5, 100-120 lb 
49.5 to 54.5, 120-160 lb 46 0 to 5».5. 

MEAT COMMISSION— Average Fat- 
stock prices St representative markets. 
GB— Cattle 103.48p per kg 1w (— 4.041. 
UK— Sheep 153.23? per kg est dew 
(-6.78). GB — Pigs 77.63p per kg Iw 
(-1.S8). 

COVBfl- GARDEN— Prices for the 
bulk of produce, in surfing per pack- 
age manepr where otherwise stated. 
Imported Produce: Oranges — Moroccan: 
Navels 48/113 3.20-3.50: Spania: Navals/ 
Nave&ras - 42/130 3.80-5.00: Jaffa: 

Navels 60/106 4.35-4.50. Shamovti 60/ 
144 4.90-5.80. Seviltes— Spanish: 7 50. 
Cle m ant ino e Spam a: 3.00-4.00: Moroc- 
can: 1/5 3.00-4.50. Satsumas— Spania: 

3.00- 3.60. Lemons— Cypr>ot: 3.20-5 50: 
Greek: 5JXV6 00: Turkish: 4.00-5.00: 
‘Spania: 40/50 2.40-2 50. Grapefruit — 
U.S.: Pink 32/48 S.50-7 00; Cypriot: 
large canons 3.00-4.00. smatt canons 
2.80-3.40; Jaffa: 38/88 3.50-4.90 Apples 
—branch: New crop. Golden Delicious 
20 lb 3.00-3.80. 40 lb 5 0-7.60. Stark- 
crimson 40 lb 6.50-7.50, 20 lb 3.40 l3.S0. 
Granny Smith 7.50-8.50: CanJdian: Red 
Def/cious 9.0B-1O.C0; U.S.: Red Delicious 

8.00- 13.00; Hungarian: Stark ing 6.50- 

7.00. Paere — Dutch: Conuce 14 ib. -per 
pound D25-0.S; Italian: per pound- 
Passacrassena 0115. Psechn — S. ■ Afri- 
can: 2 50-350: Zimbabwean: 4 00. Nec- 
arinas iHt Uean: 9.00, Plums— S. 


Oils 

Coconut (Phif). 5550y 9550 

Groundnut S69t^ +8 t 

Linseed Crude, : 7 

Palm Malayan J&6 lSXht -2.6 ($486 

Seeds I 

Copra Philip.... £350y §345 

5oxabean(UXU;8276z +05 ,S262 
Grains | 

Barley FuLMar £108.40 -OJfllfilOa.Oo 

Maize £133.50 £1325 

Wheat FutMar £1 1 1.70 -0.66|£112.65 
No2 HardWint{£U7.10y[--l.a| ; 

Other j * | 

'Commodities! 

Cocoa Bhipt» |£1267 +16 l£l,175 

Future May [£1204.5 +4 '£1124.5 
Coffee Ft' MarXl 136.0 -3.5 i£ 1129.5 

Cotton AJ ndex 70. 15c |67.4Sc 

Gas OH Feb. S3 14 -1.6 1 5327.75 

Rubber ^ilo)... 50.7 6p + 0.7&j49p 

Sugar (Rawj.... 162yx l£170 

Woolt’pa Ms Id. 380^ kilo). |3MpkiIo 

t Unquoted, x March, z Feb. y Jan- 
Feb. t Per 764b flask. • Ghana cocoa, 
n Nominal. $ Seller. 

African: Santa Rosa, per pound 0.25- 
0.50, Beauty 0.30-0.50; CMean: Santa 
Rosa 0.70. Apri cots 6. African: 11 lb, 
per pound 0.35-0.50. Grapes — Spanish: 
Afirwiia 11 (b 3.0-340. Negra 4.50- 
4 JO. Alphonse 104b box 11.00, S. 
African: Queen of the Vineyard. lO-fb 
box 9.00; Ufi.: Red Emperor 0.50-0.60: 
Chilean: Seedless, per box 10.50-11.00. 
Strawberries— Kenyan: 0.70-0.80: fsreeti: 
Soz 0.50-0.00; U.S.: 1.00.1.20. Li tehees 
— S. African: 0.70. Melons — Spanish:' 

Green 10 kg 5.0-7.00. 15 kg A1 13.00; 
Brazilian: YeUow 7 .50-8.00. Pineapples, 
—ivory Coast; each 0.40-1 .20. Bananas 
— Columbian: par pound 0.18. Avocados 
— UJ.: large box 6.00; Israeli: 3.00- 
3.60. Mangoes— Kenkan: 8/16 4.50- 
5.00; Peruvian: 9.00; Brazilian: 8.00. 
Dates— Tunisian: 30s 0.45-0.55: U.S.: 
0.42-0.43. Tomatoes — Spanish: 1 .00- 
2 00: Canary: 2.50-3.80. Onions— 

Spanish: Graon 3/5 3.60-4.50. Capsi- 
eums— Spanish: Green 4.00. red 5.00: 
Israeli: red 6.50. green 3.60. Cabbages 
—Dutch: white 4.50-4.60. red 5.00. 
Cauliflowers — Jersey: 24s 6.00-8.00: 
French: 24s 7X10-8.08. Cel a iy— Israeli: 
4.60: Spanish: 4.0-5.00. Carrots — 

Dutch: 22 fb 3.00-5.20, prepacked 4.00: 
kaftan: per pound 0.10-0.12. Lettuces — 
Dutch: 24s 2.60-3.00. 12s 2.20J.30. 
Cucumbers— Canary: 2.00-3.00. Chicory 
— Belgian: 3 kUoa 2.02- .2.50. Endive — 
French: 4.00-5.50. New potatoes — 
Canary: 23 lb ware J. 50*5.00. raids 5.00: 
Jersey: 13^b tubs ware 0.70-0.80. mids 
0.70-080: Cypriot: 5.30-5.40. Auber- 

gines— Canary: 4.00: Israeli: 6.50: U.S.: 
10.00; Kenyan: 4.00. Walnuts— Cmnese: 
per pound 0.40. 1 Fennel — Iwlun: 5.00. 

English Produce: Potatoes — per 55 lb. 
whits 2X30-3.00. red 2.80-3.60. King 
Edwards 2-80-4.00. Mushrooms— pa: 
pound, open 0.30-0.40. closed 0.55-0.70.- 
Apples— per pound. SraJijJsy 0. J8-OX3E. 
Cos’s 0.20-0.32, Spartan's OJO-O.S. 
■PBaro po r paimd Conference 0-14-0.21. 
-Cornice 0.18-0.25. Cabbages — per 30. 'b 
bag, Celfec/Jjn King 1.50-2.00. Lmtuca* 
— peril, round 1.00-1 80. Oniona — per 
55 to 40/BOnan ZXB-3 .00. Canu t e ■ pe r 


NEW YORK. January 19. . 
THE precious mauls continued to 
decline on commission house liquida- 
tion in Ime with the uupward trend 
to interest rates. Capper continued 
to attract support in anticipation of 
U.5. production cutbacks. Cocoa 
remained firti on short covering in 
reaction to reports of a smeller Ivory 
Coast crop. The grain and soyabean 
complex weakened on heavy long 
liquidation in reaction to bearish 
supply-demand statistics. Heating Oil 
fell again due so higher temperatures 
in the U.S.. reported Hetnold. . 

Copper— Jan 72.90 (72.25), Fab 7Z75 
(72.50). March 73.60-73.70. May 75.40- 

75.45. July 77.20-77.25. Sept 73.95. Dec 
81.65. Jan 82.55. Merch 84.30. May 
85-05. July 87.80. Sept 89.55. 

Potatoes (round whites)— Feb 76.5 
(77.0), March 78.6-79.0 {78.51. April 
83.6-84.0, Nov 79.8. Sales: 888. 

Sugar — No/ 11: March 13.29-1331 
(13.29). May 13.55-13.57 (13.54), July 
13 74-13.76. Sept 13.97. Oct 14.16-14.17. 
Jan 14.20-14.30. March 14.72-14.80. 
Mav 14 80-14.95. Sales: 5.950. 

Tin — 68500-729.00 (630 00-729.00) 
CHICAGO. January 19 

Lard — Chicago loose 19.0 bid/ 19 25 
traded. 

Live Cattle— Fob 60.22-80 30 (60 951, 
April 59.45-59.35 f60.32). June 59.70- 
59.80. Aug 58.45-58 50, Oct '57.27. Dec 
58.30. 

Live Hogs— Feb 47.50-47.40 (48 80)'. 
April 46 45-46.80 (45.50). June 49.55- 

49.45, July 49.95-50 10, Aug 49.00- 
48.97, Oct 47.17, Dec 4850, Feb 48 80. 

rtMaize— March 269V27D (273). May 
27BV279 (28ZM. July 284V284V Sept 
286-2^4, Dec 2894-289V March 300V 
301. 

Pork Bellies— Feb 65.1D-65.2S (83.37). 
March 65:80-66.20 (64.35). May 67.40- 


67.60. July 68.60-68 90, Aug 68 -25- 
08 37. 

tSoyabesns — Jan 632 : j (6M'»y 

March £38-638*2 (648V), May 650*2-651, 
July 664-664*2. Aug 666. Sept 666. Nov 
672*2-673, Jan 687. March 7C3. 

§ Soyabean Meal — Jan 192.2-192 8 

(196 2). March 190.2-190.5 (194 61. 

May 192 0-1918. July 194 0. Auq 
195.3-1®. 5. Sept 195.5-196 0. Oc't 
1965-196.8, Dec 199 0. 

Soyabean Oil— Jan 18.93-18 94 

(19 021. March 19.31-19 32 (19 42j. 
May 19 99. July 23.58. Auz 20.85-20 87. 
Sept 21 .05-21 ?I0. Oct 21.25-21 30. Doc 
21.70. Jan 21. 66-21 ,7D. March 21.91- 
21.93. 

tWheaf— March 382V3S3 (391*,). 

May 293-393*2 (400V). July 393-297 Y 
Sept 409. Doc 426-426*4. March 440V. 

^Silver — Jan 872.5 (790 5). Feb 785 2 
(793 7). March 792-0-794.0, May 812-5- 

813.0. July 832.04333.9, Sept 850 4, Dec 
879 6. Jan 889.2, March • 9083. May 
927.8. July 847. T. Sept 966 4. Handy 
and Hannan bullion soprr 788 09 
(784 50). 

•Gold— Jan 370 0 (375 7). Feb 370-5- 
372.0 (377.0). March 374.7. April 277 0- 

379.0. June 384 5-380 0. Aug 394 7. 
Oct 403.7. Dec 410.0-414.0. Feb 422 8. 
April 432.8. June 442.9. Aug 453.0. Oct 
463.2. 

WINNIPEG. January 19 
SBarley— March 128.30 (123 50). May 
130.30 (130.50), July 131XXL Oct 

131 50. Dec 134 00. 

AH cents per pound ax -warehouse 
unless otherwise stated. * S par troy 
ounce. 9 Cents per troy ounce. 
It Cents per 56-Ib bushel, t Cents 
per 60-lb bushel. 0 S per short ton 
r2.C00 lb) SSCan. per metric ton. 
§§S per 1.000 sq ft. t Cents per 
dozen, ft S par metric ton. 


Monday’s closing prices 


NEW YORK. January 18. 
ttCocee— March 2131 (2035). May 

2114 (2092), July 2125, Sept 2135, Dee 
2163. March 2193. Salas: 1.676. 

Coflse— ’ C” Contract: March 135.50- 
135.80 (125.56), May 129.60.129.65 

(130.90). July 127.70-127.75. Sept 
125.25. Dec 1 23.00-123. 5\ March 
121X0-121.50, May 118.00.123.00. 

Cotton — No. 2: March 65.15-65.22 
(65.12). May 66.80-66.90 (66.79). July 
68.45-68.50. Oct 70.60-70.85, Dec 71.80, 


March 73 00-73X5. May 74.15-74.30, 
Sates: 3.500. 

Orange Jnfca— Jan 143.35 (157,751 
March 146.90 (154.90), May 148.90.' 
July 151 00. Sept 152.25, Nov 152.75. 
Seles: 2.500. 

CHICAGO, January 18. 
Chicago Inns Gold — Marsh 381.3- 
380.5 (375.3). June 3920-392.5 (387.1) 
Sept 405.0, Dec 418.0. March 434.1,’ 
June 448.6. Sept 463.3. 


EUROPEAN MARKETS 


ROTTERDAM, January 19. 

Wheat— (U.S. S per tonne): U.S. 
No. 2 Dark Winter. 13-5 par cent pro- 
tein: mid-Jan/mid-Feb 202. mid-Feb/ 
mid-March 208. mid-March/mi d-Aprt 
211. U.S. No. 2 Red Winter: Jen 168. 
feb 171. March 174. U.S. No. 3 Amber 
Durum: Jan 2GB. Feb 208, Apn I/May 
194. May 194. June 194. July 194. Aug 
194. U.S. No. 2 Northern Spring. 14 
par cent: Feb 208, March 210. Aprd/ 
May 188. June 198.50. July 189.50. 
Canadian Western Red Spring: Jan 
218. Aprrf/M ay 213. 

Maize— (U.S. S per tonne): U.S. 
No. 3 Com. Yellow: Afloat 136. Jan 
135. Feb 122, March 120. April /June 
131. Juiy/Sept 133. Osz/Dec 134 sellers. 

Soyabeans — (U.S. S per lonnel: U.S. 
No. 2 Yellow. Guttports: Alloat 270, 
Feb 267.50. March* 2BS. April 2S6, May 


267, June 258, July 269.50. Auq 770 
Sepr 270, Ocr 259. 75. Nov 269.50. Dec 
274.25 setleis. 

Soyamesri — (U.S. S per tonne): 44 per 
cent protein. 73. S.: Apnl/Sapt 237.50 
traded afloat 254. Jan S3. Fab SO 
March 248. April /Sept 240. Nov/Ma.'ch 
248 sellers. BrazJ Pellets: Jan 258 
Feb 267. March 268. Aprrl/Msy 249. So! 
Apnl/Sept 247 sellcta. 

, PARIS, January 19 

Cocoa— .(FFr per ICO kilos): March 
1319-1320. May 1318-1321. July 1335- 
1346. Sepr 1347-1350. Dec 1362-1364, 
March 1365-1375. May 1270-1380. Solos 
at call: 3. 

Sugar— (FFr per tonne): March 1915. 
1918. May 1966-1968. July 1970-1S85 
Aug 2025-2035. Oct 2050-2055. NaJ 
2050-2060. Dec 2070-2080. March 2!(S. 
2120. Sales at eall: 3: 


INDICES 

DOW JONES 

FINANCIAL TIMES 

Dow , Jan ; Jan. i Month- Year 
Jones' 18 IS J ago ; ago 

Jan. lB Jan. 15 Month ago Year ago 

Spot- '126.39 126.35 - ’ _1 

248.61 249.30 ! 243.88 256.86 


(Bpse: July 1. 1852-100). 

(Bose: DBcamber 31. 1974—100) 

MOODY'S 

REUTERS 

Jan. 18 Jan. 1 5 'MontlKigo Year ago 

Jan. i9Jah. iSM'nth agoYeaTago 

888.6 1004.4 972.4 1203.1 

1623.1 1621.8 1607 J! 1692^7~ 

(December 31. 1931-100) 

(Base: September 18. 1921—100) 


25/28 1b 2.00-3.60. Beetroots— pc: 23 1b. * 

round 1.00-1.40, long L50-1 SO Swedes 

—per net 1 .60-2.00. Sprouts— pr : TO to GRIMSBY FISH-— 'Supply -vw 
1.50-2.80. Spring greens— per 25-4-5 Jb (unprocessed) per stone- 
Cororoh 7XJ0. Rhubarb p er 10lb 2.00- demand good. Prices at ^ 

-2*>- 2.50-M.70; Large p^ D^ * ,t! * 


I 






34 1 I, 

Companies an Harkuts 


LONDON STOCK EXCHANGE 


Gilt strength continues and short tap stock exhausted 


Equity leaders impressive and index at 4-month high 


Account Dealing Dates 
Option 

•First Declare- Last Account ■ 
Dealings tiofls Dealings Day 
Dec 23 Jan 7 Jan 8 Jan 18 
Jan 11 Jan 21 Jan 22 Feb 1 
Jan 25 Feb 11 Feb 12 Feb 22 

• ” Now time ” dealings may taka 
place from 9-30 am two business days 
earlier. • . , 

Growing expectations that the 
miners’ vote will not sanction 
strike action against the NCB 
pav offer imparted all-round 
strength to London stock markets 
yesterday. Further heavy buying 
oF Government securities ex- 
hausted the authorities' supplies 
of the short tap issue in the 
early dealings. Sustained demand 
enabled the 'Government broker 
to sell quantities of the three 
tranches of longerdated Gilt- 
edged created last November, = 
originally of £ 250 m each. 

Despite the official sales, 
longer maturities advanced a 
pninr and more as overseas 
funds continued to swell 
domestic support- attracted by 
yields still in excess of 16 per 
cent. Other considerations moti- 
vating Investors included a 
further slight easing in short- 
term money market rates and 
hopes that other domestic 
interest rates would follow. 

Setbacks at both emfe of the 
Gilt market were short-lived and 
the ultra-long Exchequer 12 per 
cent 2013/17 settled 1* points no 
at the day's highest of 84. 
Among medium life stocks. 
Treasury 14 per cent 1996 ended 
similarly better at 89 i, while the 


short Treasury 15 per cent 19S5 
dosed I dearer st 985. Treasury 
3 per cent 1985 was the same 
amount up at 76 and the ex- 
hausted tap. Exchequer 14 per 
cent 1958, f better at 93|; the 
latter was issued In mid- 
November at 95} and the 
authorities’ supplies ran out 
yesterday on bids of 93. 

Equities shook off Monday's 
lethargy and gained in confi- 
dence throughout the session to 
close at the day's besL Firmer 
New York advices overnight 
encouraged a higher opening, 
but investors were not deterred 
by the enhanced prices. Business 
in many stocks became brisk and 
although trade faltered later 
several leading shares notched 
up double-figure galas. 

Illustrating this, the FT Im- 
dustrial Ordinary share index 
dosed 11-2 up at 545.9, its highest 
since September 11 last. Pro- 
perties failed to participate in 
the advance, being subdued by 
MEPC’s call for £62.3m via ■ a 
■ rights issue. 

Banks good 

Business in Traded options 
was well distributed among 
those stocks in issue. Recent 
favourite Racal attracted 272 
deals, with business split evenly 
between calls and puts. Imperial 
returned to the fore with 380 
calls arranged, while Grand 
Metropolitan recorded 281 calls, 
199 of which were done in the 
January. 180’s. 

The major clearers returned to 
-favour in the Banking sector, 



FINANCIAL TIMES STOCK INDICES 


1 

( 

Jan. 

19 

Jan. 

18 

Jan. i Jan. ! 
15 ; 14 : 

Jan. 

13 

Jan. 

13 

A 

year 

ago 

i 

Government Secs.,...' 

63.01 

68.96 

62.37i 6H.Z4 

62.30 

61.93 

68.63 

Fixed Interest..... | 

63.68 

63.22 

62.9 ej 62.88 

62.88 

62.80 

70.35 

Industrial Ord. [ 

548.9 

534.7 

331,6 . 627^ 

627.3 

.624.6 

458.6 

Gold Mines .j 

S71.6- 1 866.6 

273.^ 865.6i 

271.0 

884.5 

SBSJ} 

Ord. Div. Yield J 

5.521 5.63 

5.65j 5.70: 

5.69 

5.72 

7.85 

Earnings, Yld-XIfulty 

9.73 

9.93 

9.66) 10.01, 

10.00 

10.05 

17.52 

P/E Ratio rneti( *) ' 

13.13 

12.65 

12^D‘ 12.76 

12.76 

12.71 

6J9 

Total bargains i 

80.3BT 

19,116 

14,88b 1 13JI27 

13,169 

13/946 

20/161 

Equity turnover £m.! 

_ 

107.60' 100.731 95.69 

85.99 

107 JBB 

76.68 

Equity bargain*. / 

- 

14,016 

10,919. 10,764 10.836 

12,301 

11.486 


Basis 100 Govt. Sacs. 15/10/28, Fixed Inr. 1928. industrial Ord. 
1/7/35. Gold Mines 12/9/56. SE Activity 1974. 

10 am 539.1. 11 am 542-9. Noon 542.5. 1 pin 542.6. 

2 pm 543.3. 3 pm 544.4. 
latest Index 01-246 8026. 

•N4I-11.73. 


HIGHS AND LOWS 


S.E. ACTIVITY 


1981/2 


Since Com trilat'n 1 


High I Low . High Low 


Jan. 

IB 


; j-Oaliy ■ 

fW ‘ 70 ’ 61 I 60 - 17 ' 137 A ' 49 ’ 1B i^Bnrnnjns I 

Govt. SBC3... .tmiZlBli iNfllllllfllt ffllllMM I IXllf 7K< 1_ 1 


■{liamu ;(26M0;81) (9/1/56) 1 (6/1/761 

Fixed Int..../ 79.01 , 61.61 \ 180.4 i 50.83 
(20fil81|C2B/lDi8U(2BnH47) (3/1176) 



Ind. Ord 597.3 

,(59/41811 1 

Gold Mines.. 439.0 I 
l 14/9/31 i 


446.0 -. 697.3 . 49.4 
(14/1/811 (50/4/81) (28(6/40) 
363.6 ' 558.9 1 43.6 
(28(8/811(22/8/80) <28/10/70 


|UitieS.....J 

Bargains... 

Value 

5-day Avrge 
Gilt-Edged 
Bargains... 
Equities...-...; 
Bargains... 
Value i 


94B.O 


Jan. 

15 


186.7 


90-8, 
a 17.7' 


70.7 

803.6 


163.21 143.B 


76.91 

201.0 


73.6 

194.9 


recording double-figure gains 
following renewed investment 
support Barclays pur on 15 to 
455p, Midland 14 to 346p and 
Nat West, 400p, and Lloyds, 432p, 
rose 12 and 10 respectively. Else- 
where, Royal Bank of Scotland, 
a depressed market sihce the 
Monopolies Commission's veto of 
the Hongkong add Shanghai and 
Standard Chartered bids, rallied 
a fpw pence to 123p, after. 12op. 
on a Press suggestion of a 
merger with the last-mentioned. 
Profit-taking in the wake of a 
Press comment that a bid: for the 
group saems extremely unlikely 
left Bank of Scotland 10 down at 
470p. Grind lays improved 
further to 2l6p in the early trade 
before reacting on profit-taking 
4o finish a net 3 cheaper at 20Sp. 
Discount Houses moved higher 
in sympathy with gilts. 

Eagle Star advanced 13 For a 
two-day rise of 27 at 334p on 
renewed talk that the German 
Allianz group will bid outright 
for the company later in the 
year. 

Leading Breweries returned to 
the fore and closed at the day's 
best. Grand Metropolitan stood 
out with a gain Df 9 af IfiOp, 
while Whitbread. 92p, and Bass, 
204p. rose 4 and 6 resooctiveh. 
Arthur Guinness continued In 
attract institutional moncv and 
closed 4 dearer at 70p. Selected 
regicmals continued to resnond 
to bid speculation. Matthew 
Brown hardening 4 to 16So and 
Border adding a like amount to 
S6p. 

Selected leading Buildings 
displayed renewed firmness and 
stock shortage exaggerated some 
gains. Tarmac put on 14 to 416o 
on talk of a broker's circular, 
while Bine Circle firmed 30 to 
524p and BPB Industries 8 tn 
S34p. Among Contracting and 
Construction ■ issues. Tavlor 
Woodrow advanced 12 to STOn 
and John Laing 4 to 58o. 
Timbers made good progress on 
optimism about interest rates. 
Magnet and Southerns rising fi 
for a two-day gain of 14 to 34(1*v 
and International 3 to 84p. 
Elsewhere, Countryside put on 3 
to I14p in response to good pre- 
liminary results, but Allied Resi- 
dential shed a penny to 21p on 


the Board's announcement that 
profits will fail to meet the 
prospectus forecast 
Business in I Cl was small, hut 
the price closed 6 higher at 
32Qp, after 322p. Fisons added 
5 to 180p following the announce- 
ment that the company had 
acquired’ the remaining 50 per 
cent of FJsons Western Corpora- 
tion for CS8.5m. Croda Inter- 
national, in receipt of a 70p per 
share cash from Burmah Oil, 
shed 2 to 73p pending develop- 
ments. 


to. 155p. 'Revived demand in a 
limited., market left Chemring 7 
to tile good at 275p. Haden im- 
proved. a similar amount to 207p. 
while support ‘was forthcoming 
for Delta, up -2} at 46}p.' and 
• DDL 11. dearer at 58 r. 

Leading Foods- attracted' good 
support in early dealings, but 
closed below the best as interest 
faded. Associated British Foods 
touched 157p before closing just 
2 dearer on balance at 152p, 
while Unigate finished only a 
penny firmer at 14p, after 117p. 
Tate and Lyle, preliminary re- 
sults due today, reverted to the 
overnight level ■ of 210p, after 
212p, but Cadbury Schweppes 
added 2'for a two-day gain of 5 
to 9Ip on overseas earnings con- 
siderations. 

Demand '-in front of annual 
results due today lifted Trust- 
house Forte 6 to 121p. * ■' 

. Inspired by a buoyant gilt- 
edged market, the miscellaneous 
industrial leaders advanced 
smartly. ■ Institutional support 
was evident in the early dealings 
and helped Reed International to 
close 14 higher at 266p; the third- 
quarter figures are due on 
February 2. Glaxo put on 12 to 
466p and Unilever .30 to B35p. 
Elsewhere, Sidlaw Industries 
jumped 15 to 243p on the 'annual 


report and AGB Research gained 
7 to 277p tn reeponse to the 


MET give ground 

Interest in Stores was largely 
confined to secondary issues. 
Belter-than-expected first-half 
earnings from MFI Furniture 
were offset by the chairman’s 
bearish remarks on current 
trading, and the shares, a firm 
market in front of the announce- 
ment . reacted to close 4 cheaper 
at 57p. Other D-I-Y issues were 
irregular; A: G. Stanley Were 
wanted at 51o, up 4. but Home 
Charm gained the turn to 323n. 
The TV/video rental deal with 
Rediffnsion promoted further 
Rupuort of Dixons Pfmtogranhic. 
7 up for n two-day gain of 30 at 
1G5 d: Red i /fusion finned 4 more 
to 1700. Renewed spe"ulative 
int^reFt lifted Ellis and Gold- 
stein 21 to ' 24*0. A. Goldbere, 
3 to 50 d. and Peters. 0 to 82n. 
The leaders retained a select- 
ively firm apnearance. 

Leading Electricals contri- 
buted to the firm market trend. 
Good early buy in?, some of 
which was on institutional 
account, promoted gains of 12 
and 15 resoertivrlv in Plessey. 
352 o. and GEC. S2 I)d. BICC out 
on 8 to 2S0o and Thorn EMI 5 tn 
442o. A weak market since last 
week's interim statement, Racal 
nicked no 5 to 383n. Elsewhere. 
Stan Sard Telephones and Cobles 
attracted buvprs and moved no 
18 to ^3 d. white ne'-si'^ent in- 
vestment sunnori heino-* CiM* 
and Wireless to advance S uter'-V 
to 234o. • 

Further selective hu w ng w3; 
evident in the Engineering 
sector. Hawker Siddeley stood 
out in the leaders with a rise of 
10 tn 326p, while GKN firmed 6 
to 176p and Vickers cd jed up Z 


-satisfactory interim results. 
Diploma Investments added 9 
afresh to 215p. Still hoping that 
Mr Gerald Ronson's Heron 
Corporation will persist in its 
efforts to. gain control of 
Associate! Communications 
Corporation and confirmation it i 
the afternoon that a third suitor 
had appeared on the scene, ACC 
moved up 2 more to7 Op. Against 
the tread, British Cinematograph 
Theatres fell 7 to 43p on the 
interim deficit. 

Motor Components attracted 
renewed support and often 
finished with useful rises. Lucas 
dosed 9 up at 231p, while Dowty, 
135p, and Dunlop. 67p, finned 5 
and 3 respectively. 

The announcement at the out- 
set of a £62.3m -rights issue 
prom pted a sharp reaction in 
MEFC which dropped to 205p 
before rallying to close a net 11 
down at 214p. British Land, 
standing at Sip awaiting the in- 
terim figures, touched S2p 
following the announcement be- 
fore closing a net 4 up on the 
former price. Revived specula- 
tive interest lifted Westminster 
Property I| to 32 jp. while annual 
profits in line with market 
estimates left Espley-Tyas a 
penny dearer at 82p. 

Oils subdued 

Oils remained subdued, but 
trended a little harder with 
British Petroleum and Shell both 
risict a couple of pence to 302p 
and 380p respectively. Among the 
explorai*v7 issues. Sun (UK) 
Royalty attracted further support 
and rose 10 more to 160p, while 
Clyde improved a similar 
amount to 140p. 

Trusts moved ahead on a broad 
front, reflecting the fairly wider 
spread advance in equities.' 
Caledonia Investments moved up , 
17 to 315p in sympathy with the 
rise in British and Common- 


wealth, 13 higher at 345p. Lefs 
put on 3$ to 59p.. 

Interest revived In Money 
brokers. Mercantile House im- 
proving 14 to 412p and R. F. 
Martin 7 to 305p. Elsewhere in 
Financials, buying m a . difficult 
market left Aitken Home 20. 
higher at 185p. 

Movements in Textiles - were 
again usually attributable to 
special situations. Stroud Riley 
Drummond continued ’to draw 
strength -from (he pleasing in- 
terim statement and added 2 for 
a two-day gain of 4f to 48p. 
^George Spencer remained a -firm 
market reflecting . revived take- 
over speculation and closed 3. 
dearer at 27p. Allied Textile, pre- 
liminary results expected next 
Monday, rose 6 to 154p. _ 

Bats, the subject of favourable 
press comment over the weekend, 
added 7 for a two-day gain of 
22 at 380p. - 

Golds edge higher 

Mining markets managed to 
make modest headway in gen- 
erally quiet trading. South 
African Golds edged higher, 
boosted by the firmer bullion 
price, and the improved Decem- 
ber quarter profits from - the 
mines in the Barlow Rand 
group. The gold price dosed S3 
up at S375.g0 an ounce. 

Among the mines in the 
Barlow Rand' group. Durban 
Deep rose 19 to 739p and 
Blyvoor 8 to 475p. Elsewhere in 
Golds, the heavyweights were 
featured by President Steyn, i 
firmer at £I3{, and St Helena, § 
to the good at £14J. The Gold 
Mines index moved up 4.7 to 
271.5. 

London Financials made good 
progress at the outset as wide- 
spread buying followed the sharp 
gains in UK' equities and the im- 
provement In metal prices. 
However, profit-taking pared 
gains by the close. 

Rio Tinto-Zinc closed 9 better 
at 425p, .after 427p,‘ and -Gold 
Fields 2 harder at 445p, after 
448p. Charter Consolidated were 
particularly vulnerable towards 
the close and ended a 'net' 2 
.cheaper at 235 p, after 240p. 

Australians regained some of 
the ground lost in recent weeks 
with sentiment much improved 
by the trend in metal prices and 
the sizable, oil flows from the 
Goodwyn 6 appraisal well drilled 
on the North West Shelf. 

Woodside Petroleum, which 
has a 50 per cent Interest in the 
well, moved up 4 to 60p. 

Elsewhere in oil and gas 
issues, Claremont rose 3 to 79p 
but Santos gave up 10 to 355p 
and Strata Oil 2 to 46p; Strata’s 
26.95 per cent-owned . Woodada 
No. 5 well has been spudded in 
the Perth Basin. 

Golds were well supported 
with GMK recovering 20 to 
3l0p. Poseidon 8 up at 125p and 
North Kalgtu-U 4 firmer at 61p.- 
The leading base-metaT ' stocks 
showed Western Mining 6 belter 
at 222p, BUM Holdings 7 
stronger at 175p and Renlson 5 
harder at 240p. 

Meekathara continued to 
advance, closing 7 up at a 1981- 
82 high of 190p — a rise- of 22 
since last Ifrursday’s share split 
and scrip issue. 


Financial Times Wednesday January M1982. 

RECENT ISSUES 


Z 


equities 


. 1 < a ’|“ S K I Htshi Low ( • • . - ■ 99 • r.Vf-i 


& 


Ka ■' 


80 1^13/1 ! « • ■I 91 

_ epj — ( 10 t 8 

58iwF.P,! — I -S91 ji -5QV|f;F]d^«llns 
: 166 
52 


150 ;f.p. 

il (I F.P« - ‘ gh; 

U855.M:F.P. - 305 
410 IF.P. - .• 18 

t» -FJ 4 .' — 9 

llfi 'F.P.j - '180 

- |F.P. - 5 

48 FP.; - i 4» 


*SqulpuL lOp_..,*...J. 83 |+J . HJfl3.-t|-2.%3|nL8 
Jf*C en»r-W*rr*nH 8 r — I. — ( ' 
OHedgallns Inw.- i W i -i .*■»[ *-viAJ3| - 

so.™/ fa — =4 — j!4j*ia. 

ii s.sliwiit 


i*-" .! 

& 




47 I^Yorkltoont;.. j 48 J ...-jbA 5 i,. 


¥ 


FIXED INTEREST STOCKS 



¥ : 


¥ 


- loo ; 99M 

- ,100 ! S9«» 

- 1 ie i 64 

- , 81.-I 54 ' 

- ioiu'ioo 

- 105. ,1X4 


Da I Si% Bds. 
t • Do. X6i<s 

IPennl ne-Comtp. tSpcXooy.UnsJjulSSI] 
r Do. XSi«p ; o,On»: k.i 

rretfM lagenv. 199U- 1 .=...--..w.^.-,llOX l + t . 

■Vioen 10%onv. lean ..—...tiOfi . 





“ RIGHTS 99 OFFEftS 







L. 




4* or 


, stock • 

- 


(ft ■ High | Low 


0 

•1 




~-4 ; ' 


29(1, SW 7ttlAbwootfU(aeK,7l«p-. 

29/1/ 168 | .456 

-1 92p»rl) 65pmC3«A?L J 

- 3 pm | lpm -f-Caitton Raal 

2t/l! 183 172 iGrpatPorttand Estates 60pj. 

- . 80pm) 20pm,Gfiquatend ficte-.v: 

- XOipni' 7pmj/At' 


— .-...1 

42pmt aapmXwiK^Bva 
63 I 48 /Lennon* Grp-IOp.^. .; 


168 t+T* 

X78f-4 

20pm! 

lOiapnv+S 


66* ^ 

• 

w*. 


10/12 
F.P.j . •: 


Sl/l' 54 ) 50 [Bt^gfcPtoOeT.ZI^! 

— I 29 i 26 [TeJfoa 20p. — ...1 

28aill7pmU05pm'T NT 50o.„..^.'. — 1 

•- , 58 | 52 | We*fWO/|a P .. 




61 


^ - 


I . „ mM % 0 • . ■ 

1 Q 6 pm >+2 . 


: r- 


Ranunetaden date osmily lact day ter dnaOng Iree oTMamp duty; '*Rgte» 
baaed ’ on prospectus estimate, d Dividend mi peW or P" table cm part o* 
caphab cover bend oo dividend on full cap?*L, g Asaemed dtewfmtf serf yf*U ■ 
P Assumed dividend and yfalcT iter scrip tonfe m tatBrim : atnce^ncraMrt 
reattmed. u Fdracaat dhrtdaod: cavar , baaed on' ’ Wgtaa. V”?* . 

F DrvUand and yield based on prospectus -or othur. taffidal BetimateTor 192- - 
Q Gross. T Rguma assumed. * Cover.^alloW*: .*« converatea ^- elieiiteih- 
how lanWna 'tof dMdmd or ranking only lor restricted dlridenrfa.^ ^Hae^ 
plica, p Ponce Aalsss atberwta* .todlceted. . 1 1ssued by-tender.' |OSarMJ • 
ha Mars ot ordinary Shares «aa“ rifi/rts.^ •* lasned-by- nw t/f - caprtaiteaUiw 
SS Reintraduced. ' « Issued In connection wfeh raorgepisetion, jrtefc* 

over. SB Imraduction. □ issued, to : lamer pnterence Juildan. /- ■ Altetman - 
ira (c “ 


4?-- 

m 

%iC- 




OVBr. Htf IDuOGUvuOHr- U W: IWIiroi HlMWWWrm - 

letters for faUy-Wrid). • Provtotonaf or partty^ld altottteBrt team. * Wfr .. 
warrants. #t OiaUnga under aoectef Bole. <9 UnlteMd Secertttee « 

Xt London liating. t Effective Is* ue price after sCrtp. J Fd'oe^y <*■•« b>, 
under Rot* 163(2)(a). 




active stocks 


psase- =. 

" r: 

U-~- . 

. 

it=:- 


Above average activity wit noted In tit* tollovring atoefca -yesta/day 


Slock 

Aitfcen. Hum* 

BAT Inds 

Brit. 8 Commonwldi 
Cable and Vtfiratose .. 
Commercial Union :. 
Delta Croup - 


Closing; 
pries Day's-. 


pence 
. 185 . 
380 
345 
234 
128 


-Change 
+20 
+,7 
+13. 
* 8, 
+ 3 


. • Closing 

price Day's 
- t panes .chengs 
--+13 

W.'„ 23V ’ :+9 


Stack 


ftyl. . Bk. Scot. 

Eagle Star 

GEC : 

Habitat ......... 

ICl ■ ..... 

Bank Scotland 
GUS ''A" 


' Stock . - 
Eagfe Star .. 

Lucas Inda. V. 

MEFC ■ 2t4' -11 

Sdlaw .:.n: 243 - - +16 

Tarmac . 418; +14 

, 4A, ;+ '■&*.; -.yiteodsida 3 

MONDAY’S ACTIVE STOCKS . . 

. Baaed ori batgaina rpcarded.ln.^E 0(ficlsi;liaifc..^l . j J . 

-4.'. • ■ ■/ "Monday’* ", 

. .No.- of doting 

'" price price Day's 

Stock . ehsogaa , penes -chanqa 

RacaT-ElBc. W.--” 378. . “ 7 
Shen Trans. ... ’ lO .- 378 -4 

BAT lodaw.-:-:-. ■' "'S ; 373 .. +15 

. _ BP 9 ■- i3W .. •— 

+ t - Devenirt fj A) 9 36S .. .+35 

+1D‘ LASMO 9.1-. 3BS • — - 

+ 6 1 8- 314 -2 


• . - 1 

is 7 

v« - - - 

-. a>._ . •; 
3-* 

' Sft-- • ’ 


Monday's . 

No. of dosing 
price prlca . Day's 
changes pence' change 


U 

12 

11 

11 

It 

10 

10 


1® 

■321 

805. 

'118- 

33 

.480 

468 


— B 
+ 14 



+ 5 



services you need: 


r. 








1. Qeaniqg 
2- Office cleaning 
3. Toilet & washroom cleaning 
4- Windows & Ight cleaning 

5. Walls & (filing cleaning 

6. Carpets & upholstery shampoo 

7. Supermarkfits/store cleaning 


n 


15. Hospital cleaning 

16. Computer room cleaning 

17. Kitchen cleaning 

18. Theatre cleaning 

19. Hotel cleaning 

20. Domestic services 

21. Leisure centre maintenance 


c“l 

□ 

□ 

H 
□ 
□ 








8. Environment cleaning 

9. Refuse collection 

10. Scftools/rollege cleaning 

11. Dust control 
■ 12. Pest control 

13. Shopping centre maintenance 

14. Passerger terminal cleaning 


1 1 22. Factory cleaning 

m 

1 1 

1 1 23. Machine degreasing 

! | 

I 1 24. Building maintenance 


1 1 25. Transport cleaning 

1 

1, -J 26. Car park cleaning 


1 -] 27. Floor, maintenance 


1 J 28. Linen hire 

1 ! 




NAME. 


-TITLE 




COMPANY- 

ADDRESS- 



u 


.TELEPHONE MX 


■For immediate attention post to: Development Department, 

Initial Service Cleaners Limited, Initial House, H«h Street, Potters Bar, Hatfatishire £N6 5LW Telephone: Potters Bar 44541 




SC 

INITIAL , ; 

cleaning and maintenance the wayitshould be.>. 


NEW HIGHS AND 
LOWS FOR 1981/2 


Th. faHowino ouotatierH In ttre Slura 
Infcrinat/Wi Soralre ynteretav aMalncd new 
Hlabs and Lam lor 1981-82. 


NEW HIGHS (44) 


British foWds iai 
F ndp, S':K '82-84 Trwi. 3nr 19S6 
Ejrchqr. 3s= '9M E-char 15 k 1997 
COMMONWEALTH LOAftS ID 


A list. 5 : :PC 1981-82 

LOANS ID 
FFI rux> Fn .1 S':BC 
19B0-B2 

AMERICANS tl) 

IBM Cerp 

SEERS <11 

Orrrne Km* 

Bill LONGS 12] 

BFB Ind;. Countryilde 

CHEMICALS '4| 

Allied colloid j Jnt. Paint 

Hickfon A Welch Lnparte I ltd;. 

DRAPERY & STORES IH 
Brown (N.l 

ELECTRICALS IGl 
BLR M K. Electric 

Cable & W relcss Scholu IG. H.) 

Jones Stroud Utd. Sclentlftc 

ENGINEERING ID 
Baker Pert Ins 

FOODS 14) 

Octant Salisbury CJ.i 

Low fWm i Tale A Lvlo 

INDUSTRIALS 110) 

AGB Pci earth London & Mvcrnccl 

Baxter Travenol Peerlni 

Blact Arrow . Pritchard Services 

Black IP.) Sketch lev 

GU» WolwIpy-HuBbM 

LEISURE [SI 

HTV fntaiun 

HOr Inn 

SHIPPING l» 

Brit. A Com'wraR/t London A Overseas 
SHOES (ti 

Hridlam Sims 

TEXTILES ID 

Stroud Riley 

MINES m 

Meekalharra 


NEW LOWS (9) 


AMERICANS (It 

UW. Tech 

ELECTRICALS (21 
Newman Inds. Scan Dan 

INDUSTRIALS I1> 

B.H. Proo. 

OIL A GAS (II 
Tn Basin Res. 

MINES «A> 
Minorro Falcon 

Ccronation Noriltgate 


RISES AND FALLS 
YESTERDAY 


Rlsns Falls Same 
British Funds .87—4 
Corpns. Dorn. 6 

Foraign Bonds 44 — 28 

Indualrlala . . .. 437 90 830 

Financial & 

Props. - 261 27 234 

Dlls 32 27 51 

Plantation* ... 1 2 21 

Mines 72 28 68 

Others 41 72 37 


Totals ... 


965 246 1.273 


OPTIONS 


First last Last For 
Heal-' Deal- Declare- Settle- 
lugs iogs Uon meat 
Jan 18 Jaa39 Apr 28 May 10 
Feb 1 Feb 12 May 13 May 24 
Feb 22 Mar 5 Jon 3 July 14 
For rote indications see end of 
Share Information Service 
Stocks favoured for the call 
included Eagle . Star, Lee 
Cooper, Woodside, Tri control. 
Town ana City Properties, 
FNFC, Rothmans International. 
RHM, Burmah, Associated 
Dairies, Ocean Transport and 
Trading, Pttklngton and Flair 
Resources. No puts were re- 
ported, bat doubles were com- 
pleted in BP, GKN and Wood- 
side. 




FT-ACTUARIES SHARE INDICES 


These Indices m the joint compilation of the Finmcial Times, the institute of Actuaries 

and the Faculty of Actuaries 





M 


mm 


i pubgrijid 




4S* 

,:X 


* . = • r - .fr;--/. j • a; • ■; 


♦ 


























































II 


II 


III 


j 


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Five to Fifteen Years 


22 
18 
16 
45 36 

42 33 

35 30 . 

52 35 

97* 87 
58 
80 


fSJO 


17.40 
<5.73 
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17-40 
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CHEMICALS, PLASTICS— Cont 

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35.79 ijL 

15.46 

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A FINANCIAL TIMES MANAGEMENT HEPOitT 

Consolidated Accounts 
in Europe 


The E.E.C. Seventh Directive on Consolidated Accounts is so vital that finance 
directors and accountants should start thinking about it now. It- will affect all 
limited companies within the European Community that are members of 
groups. 

CONSOLIDATED ACCOUNTS IN EUROPE, by international accounting firm 
Ernst & Whinney. will help you prepare to meet the require men is of the 
Seventh Directive. 

•jc it reveals the likely impact of The Seventh Directive 

* It places the directive in perspective by analysing current law and practice 

* It warns you in advance of the likely requirements 

* It informs you of what Europe's major companies think are the difficult 
areas 

* It provides a case study to demonstra La in a practical way the problems of 
producing consolidated accounts 

Order your copy of CONSOLIDATED ACCOUNTS IN EUROPE now. 

r pjeaBA return to Marketing Dept. The Financial Times Business Information Ltd. 
Braden House, 10 C-aimm Street, London EG4P4BY 

tUM.ynrf mfi. copyfcopies of ConsoEdaled Accounts in Europe at £48CUKjor 

USS98 (outside UKJ. 

I enclose cheque value flUB— made payable to Business Information. 

BLOCK CAPITALS PLEASE. 




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Unless Otherwise Ireflated, price* and net dhMeods are in pence and 
denomha ti ons are 25p. Estimated price/earnings ratios and town art 
rased on tales*, aamod reports and accounts and, where pessBiie, are 
updated on Mf-yeariy figures. P/Es are gW i t rt on ”n«” 
dterifcuUon bash, renting! per share being computed on profit attar 
tamtoa and unretteved ACT where applkaWe; bracketed figures 
Urfkate 10 par cent or more difference if catadattd on *W 
rfistribeflon Cavers are based on “nundauaa'* distribution; this 
compares gross d M dend costs to profit alter taxation, exckxfiog 
exception! prafinAosses but ineMfngestlmtcd extant of ofbettaMe 
ACT. Yields are based on middle prices, are gran, adjusted to ACT of 
30 per cent and allow for value of declared dtartoutloo aad riffhts. 

• Tip” Stock. 

* Highs and tan urkedtlu have been adjusted In aHow tor iftffe 

Isoms tor cash. 

t Interim since Increased or resumed. 
t interim state reduced, passed or de fer red. 
tt Tax-free to non-residei4s on appHcatioo. 

♦ Figures or report awaited. 

♦ USM; not Qsted on Stock Exchange aad company rot subjected to 
same degree cf regttiaticui as listed se cu ri ti es. 

IT M In muer Rule lfa3tZXaV; not lined on any Stock Exctangi 
and not subject to any fisting mpdrementt. 
tt Drtrit In under Rule 163(3). 

* Price at time of suspension. 

9 Infleated dMdend after penAg sert and/or rights issue: cam 
relates to previaia dividend or forecast. 

♦ Merger bid or raorg anm tion in progress. 

|i Mot COQQ9Qblt. 

♦ San Interim: reduced find and/or reduced rambigs in fl a t ed, 
f Forecast Addend; cover on earnings epdated Iqr latest interim 

statement. 

7 Cover aDows for nnmln of shares not now mdetog tor Addends 
or mddag only far restricted dBrtde n d. 

* Cover does not allow for shares wNeti nay alio rank hr Addend at 
a fatore data. No PfE ratio nastily provided. 

■ No par value. 

0 Yield baxd on mmptlon Treasury Ml Rme stays unchanged unfit 
msbiritr of stock. M Avaflabie only to UK pension schemes and 
tavrane* raw pani cs engaged in pension bulta es s. a Tax free, 
b Figures based on prespe-t m or other official estimate, c Cents. 
4 Dividend rat« paid or payable on part of capital; rarer bared on 
dhridend on Ml capital. ■ fcdempttan yfeid. # flat yield, g Assumed 
dMdend and yield, b Assumed dMdend and yield after scrip issue. 

1 Payment from capital sources, k Kenya, m Interim higher titan 
previous totaL n MgUs issue pendbig. a Earobigi tuned oapredmtaary 
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aural earnings a Forecast dividend: cover hosed on previo u s year”* 
ear nin g, v Tax free m> to 30p In the £. y Dividend and yield based on 
merger terms * DMdend aad yield tadudr a special payment: Cover 
does not apply t> special payment A Net dividend and ytoH 

• Pre f erence dividend passed or deferred. C Canadian. E Mlnioaun 
tender price. F Dhidoid and yield i»sed on prospectm or other official 
estimates (or 1981-82. 6 Assumed Addend and yield after pending 
scrip and/or rights tone. H DMdend and yleid based on prospec tu s or 
other official estimates tor 1982. K Figures based on pnoseetts or 
other official estimates tor 1981-82. M DMdend and yirid based m 
prospertus or other official estimates tor 1983. N Dividend and yield 
based on prospectus or other official estimates tor 1981. P Flaxes 
based on prosp eccs or other official estimates tar 1982. 8 Gross. 
T Flares assumed. 2 Dhrideod toad to date. 

Abbreviation: sd ev dMdend; m ex scrip Issue: * ex rights ; » rx 
aU; A ex capdai distribution. 


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38 


Second to none 


Crane&ani 

Excavators 




MasLm^wtwrftdBle (toed. Evmey Emms. 

«ArWjL£G^ 


Wednesday January 20 1982 


Interest 

rate 


decline 

continues 


By Max Wilkinson, 
Economics Correspondent 


INTEREST RATES moved 
down, again yesterday as the 
Bank' of England lowered its 
dealing rates on Treasury and 
other, bills for the second day 
running.''-' 

The Bank dropped the rate 
at which it accepted bills up 
to J point, to 14 J per cent. This 
followed a fall of V* point on 
Monday. Yields on sterling cer- 
tificates of deposit and eligible 
hank bills fell by up to ft point 
following the news. 

The Bank's move was gener- 
ally interpreted as a signal that 
it would he happy to see a 
return to lower interest rates, 
although an immediate fall .in 
clearing, bank base rates from 
144 per cent is not in prospect. 

The seven-day inter-bank rate, 
generally ' considered the key 
to. any. movement in base rates, 
remained unchanged at 14* per 
cent. 

' However, the three-month rate 
fell half a point to 151. reflect- 
ing a general mood of optimism 
in the markets. The November 
19 shorr tap (14 per cent' 
Exchequer 1986) was sold out 
and gilt-edged stock generally 
moved up. in spite of official 
sales of stock, adding 0.65 points 
to : the FT gilts index, which 
Closed at 63.61 J 

The equity market followed 
the upward trend, and the FT 
index added U-2 points to close 
at 545.9, the highest for over 
four months. 

Three-month Eurodollar rates 
were. down t point at 14i per 
cent.. 

The market was further 
encouraged by sterling's firm- 
ness in the face of the general 
downward drift of UK interest 
rates. The index of sterling’s 
trade-weighted value against a 
basket of other currencies 
increased 0.7 of a point to 91.5. 
and the rate against the dollar 
increased to $1.8950 from Mon- 
day^ London close of S1.8896. 

Market sentiment appeared to 
be influenced more by the 
slightly better news from the 
UK industrial front than by the 
recent sharp increase in' the 
U.S. money supply. 

Money markets. Page 31 


Continued from Page 1 

Heron 


Yesterday he confirmed that his 
bankers Hill Samuel had made 
approaches to Standard Char- 
tered merchant bank, which is 
advising ACC. for further in- 
formation about the company. • 

Mr Maxwell said; “I am 
interested in buying the whole 
company. We have an S per cent 
stake in the voting -shares of 
Central Independent Television, 
in which ACC holds a 51 per 
■cent interest. In all we have 
made a £2. 75m investment in 
Central.” He said he will 'be 
making a statement shortly on 
his future intentions. 

During the hearing of Mr 
Gill’s injunction petition yes- 
terday. - brought to ensure that 
lie. eventually receives the 
record compensation payment 
of £560,000. the court was told 
by Mr Gill's counsel that the 
settlement had been agreed in 
September when "Mr Holmes 
a Court, the present chairman 
was "a cloud no bigger than a 
man's hand oh the southern 
horizon.” 

Mr Gill in written evidence 
said Lord Grade “told roe he 
and I could not work together 
.and he want#fl me removed. I 
was shacked and very angry.” 


Rail peace hopes rise 
as Murray joins talks 


1- BY PHILIP BASSETT AND CHRISTIAN TYLER 


HOPES ROSE last raght for a 
solution to the railway dispute, 
when Mr Len Murray, TUC 
general secretary, joined talks 
at’ the Advisory, Conciliation 
and Arbitration Service. A plan 
for comprehensive arbitration 
on all aspects of the pay. and 
productivity row appeared to be 
being stitched together. 

■ Terms of reference for bind- 
ing arbitration — apparently 
acceptable to the board of 
British Rail-r-were being put 
to the Associated Society of 
Locomotive Engineers and Fire- 
men (Aslef), whose train driver 
members are due today to 
embark on their second week of 
strikes. • 

It was obvious, however, that 
the terms could be difficult for 
Aslef to accept The idea is 
that arbitration should be set 
up, probably under the auspices 
of Acas. but possibly with Lord 
McCarthy, of Oxford University, 
handling the issue. 

Lord McCarthy is chairman 
of the industry’s own internal 
arbitration panel and it was he 
who said that part of the last 
pay award should be linked to 
productivity negotiations. 

It would be left open when 
and whether the 3 per cent pay 
rise tied to productvity was to 
be made to the: Aslef drivers. 
But a sum of about £2m might 


be put into a pool by BR as an 
earnest of good faith. 

-But Aslef would have to 
agree that not only the present 
argument about flexible hours 
but all six productivity conces- 
sions the board is setting, are 
included in the arbitration. 
Some of these are far more 
contentious than the rostering 
one. 

' BR would probably insist that 
the arbitration was binding and 
the series of strikes called off. 

There was little prospect that 
today’s and tomorrow's- stop- 
pages could- be prevented. But 
next Sunday's 244iour strike 
might be. 

- It was not immediately clear 
whether Mr Murray, who last 
week insisted BR was in- the 
wrong, was promoting this arbi- 
tration plan, alongside Mr Pat 
Lowry, Acas chairman. 

Mr. Ray Buckton, Aslef 
general secretary’, said earlier 
yesterday that the BR board 
would have to pay the disputed 
3 per cent second stage of last 
year's two-part II per cent pay 
deal before there would be 
further talks about the crucial 
issue of more flexible hours. 
There would be no “ softening ” 
of the union’s position. 

The BR board, meeting yes- 
terday, reaffirmed its determina- 
tion to achieve its programme 


of specific productivity improve- 
ments, including flexible roster- 
ing, to which it said all parties 
had agreed last August. 

However, Sir Peter Parker 
BR chairman, earlier in the day 
m an interview on BBC radio, 
raised the prospect of a com 
promise on the dispute. He 
suggested implementing flexible 
rostering for drivers for an 
experimental! period of a year, 
in order to bring to an end tbe 
series of Aslef strikes, though 
whether . even -this would be 
acceptable to the union is doubt 
fuL 

Guards at London Bridge 
station on BR's Southern 
Region returned to work yester- 
day; after an unofficial strike 
over flexible rostering. The BR 
board was understood to have 
severely admonished SR man- 
agement for giving the guards 
incorrect information about the 
effect of the new 7-to-9-hour 
rosters on sick pay, holidays 
and a day off resulting from the 
introduction of a 39-hour week 

Guards af London's King's 
Cross station who have also 
threatened action over new 
rosters are in talks with I •■Si 
management on the issue, and 
their union, the NUR. is. confi- 
dent that any dispute can be 
avoided. 

Cash Is key. Page 9 . 


£62m rights issue from MEPC 


BY MICHAEL CASSELL 


MEPC, the UK's second largest 
property group, yesterday 
announced a £62.3m rights issue 
lo help fund its ambitious world- 
wide -development programme. 

The group has been stepping 
up development activities in the 
U.S. and Australia and, with its 
UK programme included, is ex- 
pected to spend more than 
£100m on new schemes over the 
next two years. About £60m will 
be accounted for in the current 
financial year. 

The issue, which is being 
underwritten by Morgan Gren- 
fell and Hill Samuel, will in- 
volve an offer of 34.2m new 
ordinary share? at 188p each. 
The terms are one ordinary 
share for every five existing 
ordinary shares and one for 
every" £16.50 of flf per cent 
stock. 

News of The issue sent MEPC 


'shares dawn Up ta 2l4p. 

MEPC. which last had a 
rights issue in 1979. said last 
night that the issue of addi- 
tional equity would be in the 
long-term interest of share- 
holders. <It indicated that it 
intended at least to maintain 
its ordinary dividend on the 
increased share capital. 

Last month, the group re- 
vealed pre-tax profits of £26.79m 
for the year to September and 
an open market valuation of its 
international property portfolio 
gave it a price tag of £906m. 

Mr David Davies. MEPC fin- 
ance director, said that the UK 
would account for about £70m 
of the £100m-plus development 
programme in 1982 and 1983. 
This figure would include about 
£18tn for the initial stages of 
its Reading, 'Berkshire, office 
scheme. 


The group has an option to 
purchase the site for the de- 
velopment which could cost up 
to £50m over a four year period 
but which will ultimately in 
volve a funding partner.- 

The balance of the group's 
present capital commitments is 
divided between the U.S., where 
£20m' will be spent on the first 
phase of its Quorum office com- 
plex in Dallas. Texas, and Aus- 
tralia, where developments will 
account for another JE12m. 

The group emphasised that its 
plans to develop in partnership 
about 86 acres of land at Texas 
Plaza in Dallas were not in- 
cluded m its present capital 
commitments. This phased 
scheme could take ten years to 
complete and MEPCs own 
share of expenditure is expec- 
ted to represent one of the 
group's biggest ever single in- 
vestments. 


Continued from Page 1 

Reagan to raise taxes 


confirmation from the White 
House, and the Treasury would 
say yesterday only that all kinds 
of tax options are being costed. 
But Mr Howard Baker, the 
Senate majority leader, has said 
that he has “a pretty good idea” 
of the President's plans for tax 
increases: Tie State of the 
Union message, which Mr 
Reagan will deliver on Tuesday 
and in which the Administra- 
tion's plans will be unveiled, 
is going to be a real hum- 
dinger." he said. 

Present federal taxes are 
4 cents a U.S. gallon of petrol 
(equivalent to about 2p an 
imperial gallon), S cents on a 
packet of cigarettes. IT cents on 
a gallon of wine equivalent to 
less than 2p a bottle). 9 cents 
on a gallon of beer (less than 
lp a pint) and $10.50 on a 
gallon of spirits (equivalent to 
about £1.15 a bottle). 

Reginald Dale adds: Mr 

Reagan yesterday stoutly 
defended his economic pro- 
gramme. saying he was *' quite 
sure*' there would be an up- 
swing in the stagnating U.S. 
economy as his policies began 
to take effect 


In a news conference to mark 
the first anniversary of his 
inauguration, he said U.S. 
interest rates and inflation were 
lower than when he look office, 
.as were personal tax levels. In 
spite of rising unemployment, 
lm more Americans were at 
work than there had been in 
1980 and the number would 
continue to rise. 

He had the “greatest sym- 
pathy” for the 9.5m out of 
work, but the latest unemploy- 
ment figures — showing a jobless 
rate of nearly 9 per cent — were 
tbe continuation of a trend that 
had -started under President 
Jimmy Carter in the last months 
of 1980, he said. 

A programme was getting 
under way that would reduce 
unemployment and resolve the 
■’ bothersome " problems facing 
the UJS economy in a more com- 
prehensive way than any in the 
last 10 years. 

Mr Reagan told the poor and 
tbe unemployed his administra- 
tion had not cut overall spend- 
ing on human resources. This 
had increased and would con- 
tinue to do so, 


Continued from Page 1 


De Lorean 


the foreseeable future. The 
company’s inability to find 
further private investment for 
the project, into which _the 
Govern meni has put £ 1 7.7 57m 
in equity. £23.9m loans anil 
£25 Jim in grants — apart from 
loan guarantees — will make it 
difficult for Dc Lorean to resist 
the Goverimienrs pla^s to 
increase its influence on the 
company. 

Mr De Lorean said recently 
he felt the Government has “ as 
much control as you can have 
and still keep it a private com- 
pany. If you want lo turn it 
into a BL, where the Govern- 
ment runs the whole show, 
that's a different thing 
altogether." 

There is a weekly review of 
expenditure with Northern Ire- 
land officials, and Government 
hoard representation consists of 
two Northern Ireland Develop- 
ment Agency appointees: Mr 
Alex Feihorstone. a solicitor and 
member of an advisory commit- 
tee on industrial development in 
the province, and Mr James 
Sim. a banker and deputy chair- 
man of the committor. 


France improves nationalisation terms 


BY DAYlD HOUSEGO IN PARIS 


-THE- FRENCH Government 
yesterday opted lo pay 
generous, compensation for the 
banks and industrial groups it 
is taking over, in an effort to 
avoid any further check by the 
Constitutional Council -to its 
nationalisation bill. 

The decision caused indigna- 
tion, in the. Communist Party, 
which .is a member of The coali- 
tion government, and among 
Socialist deputies on the lefr. 

One consolation for the 
Government, which was forced 
into .improving the terms by 
trie council's rejection of the 
original compensation, is that 
the new ■ offer is likely to 
diminish the chances of the 
Nationalisation Bill being chal- 
lenged in foreign courts. The 
Constitutional Council is 
France's highest judicial body. 
..Under the new formula, 
which 'is to be put to -the full 
Cabinet" today, compensation 
for quoted- companies, and 
banks will be paid on the basis 
of the highest average monthly . 
.share price' during the . six- 
month period October l," 1980 
to March 31. 1981. "• • 

This figure is then increased. 
bj'44 per. cent or the.equivatenl . 
of France's current inflation 
rate. . 

In addition, the Government 


FRENCH NATIONALISATION COMPENSATION TERMS 
(Francs per share) 


Saint Gabafit 

Market price 
' at 8/5/81* 
136.90 

Original 

compensation 1 }- 

156.18 

Revised 

termij 

171 

CGE 

411.00 

334.15 

485 

Rhone Poulenc 

8100 

135.98 

126 

Thomsorv Brandt 

247.00 

255.71 

300 

Pechiney-Usme-Kuhlmann 

101.00 

104.44 

123 

Paribas 

245.00 

218 JO 

- 310 

Sum 

325J» 

327 35 

436 


* L»t dosing pHes baton tha Presidential election. f As ealCufOMd by iha 
nationalisation commission of tfm Notional Assembly. t Estimated (includes 
1881 dividend payment. . 


will pay dividends for 1981 on 
the basis of 1980's dividend 
payment. These too will be in- 
creased by 14 per cent. " 

A commission of experts will 
determine the value of .the 18 
banks to be nationalised which 
are not quoted on the'Bourse, 
case by case. 

Offiriais yesterday put the 
revised cost of the Govern- 
ment's nationalisation pro- 
gramme at about FFr 3fibn 
(£3"5bri) or 25 Per cent more 
than bad originally been ex- 
pected. 

On the basis of tentative 
estimates made by brokers 
.yesterday, shareholders in 
some of the big enterprises 
being taken over- will make 
large windfall, gain*. ™ new 


terms provide estimated pro- 
fits of FFr III per share over 
the closing price before the 
May 1 presidential election for 
shareholders in the Compagnie 
Financiere de Suez; of FFr 65 
per share in the Paribas hold- 
ing company; and FFr 74 per 
share in the Compagnie 
Generate d’EIecnicitp. 

M Jean-Maxi me Leveque. 
chairman of Credit Commercial 
de France, one of the fiercest 
critics of the compensation 
terms, said yesterday that he 
was “happy" for his share- 
holders. • 

Some brokers spoke of 
** dream takeover prices.'" 

The Government’s' decision to 
pav heavily reflects its deter- 
mination to push ahead fast 


with a main plank of its econo- 
mic policy. 

Officials were calculating 
yesterday that a new Nationali- 
sation Bill — which has lo 
pass again through -the 
National Assembly, the Senate 
and the Constitutional Council 
—could become law in six 
weeks. 

The new formula for com- 
pensation drops the complicated 
features of the earlier system. 
The council had criticised this 
for failing to lake into account 
The erosion by inflation of what 
Shareholders would be paid, the 
non-consolidation of accounts in 
calculating company assets and 
the non-payment of a dividend 
for 1981. 

Reflecting the bitterness in the 
Socialist party at the council’s 
ruling. M Lionel Jospin, the 
party's First Secretary, said 
yesterday that the council was 
not “ the mode! of objectivity 
and wisdom ft was said to be. 

The new Nationalisation Bill 
thus encompasses France's five 
main industrial groups, two 
major holding companies and 
18 banks. 

In addition, the Government 
has been told by the Constitu- 
tional Council that it must take 
over three co-operative banking 
institutions. 


Solidarity 


press 
seized 
by police 


By Christopher BobimkHn 
Warsaw 


POLISH security pollee have 
notched up a victory In their 
campaign to root ont resist- 
ance to martial law by seizing' 
one of Solidarity's secret 
printing presses. * 

The press was discovered in 
a private, fiat in Wroclaw, 
south-west Poland. 

Police also found leaflets 
urging the population to dis- 
obey martial law regulations, 
and forged Identity papers, 
according to Trybuna Ludu, 
the Communist Party news- 
paper. 

The official Press has rarely 
admitted that Solidarity mem- 
bers are continuing to produce 
and distribute leaflets and 
organise other forms of resist- 
ance.' 

But Wroclaw Is believed to 
have one of the best organised 
clandestine Solidarity net- 
works. 

The press made great play 
some weeks ago with the fact 
that union officials had with- 
drawn Sflm zloty (£530.000) 
from the Solidarity bank . 
account In the region just 
before martial law was 
declared on December 131 

The implication then was 
that union officials had stolen 
the money. 

It now looks as though the 
money was withdrawn in 
anticipation of the clampdown 
and is being used to finance 
clandestine union activity. 

Reports from other regions 
indicate that resistance and 
underground activity is wide- 
spread. 

Sentences in the courts 
have sometimes been harsh. 
In December, five Solidarity 
members in Bielsko Biala are 
reported to have been 
sentenced to three to five 
years in jail for “organising 
a secret structure for the 
union." In Warsaw, however, 
judges appear to be less 
strict. 

More Polish news. Page 2 


THE LEX COLUMN 



ft;?. 



4 



t’v- ‘ 


. • Mt y- 


I 

l Jf 


Weather 


UK. TODAY 

Occasional rain in eastern 
districts with bright intervals 
in northern areas. Hazy sun- 
shine in western and central 
parts with isolated showers in 
the west. Fog patches in most 
districts. 

London. East Anglia, E. Mid- 
lands, Cent. S-, Cent N., SJS-. 
E. England 

Misty throughout, hazy sunny 
periods developing. Max. 10C 
(3DF). 

IV. Midlands, N.W. England, 
Norih Wales, Isle of Man 
Misty throughout, hazy sunny 
periods developing. Max. 9C 
H8F>. 

S.W. England. South Wales, 
Northern Ireland, Channel 
Islands 

Fog paiches at first, sunny 
periods developing, isolated 
showers. Max. 11C (52F). 
Lake District. Glasgow, Cent. 
Highlands, Argyll S.W„ N.W. 
Scotland 

Sunny periods. isolated 
showers, fog paiches. Max. 
9C (48F). 

N.E. England, Borders, Edin- 
burgh. Dundee. Aberdeen. 
Moray Firth. N.E. Scotland, 
Orkney, Shetland 
Misty, occasional rain, bright 
intervals developing. Max. 7C 
M5F). 

Outlook: Mostly dry. with 

sunny intervals. Widespread 
fog. 


WORLDWIDE 




Vday j 


Y'day 



midday-' 


ni'ddey . 



*C 

■F 


"C 

■F , 

Aivecis 



— IL. Ana.i C 

10 

50 

Alnisrs 

C 

14 

57 1 Luambg. 

S 

3 

37 

Amfirim. 

C 

3 

37! Luxor 

s 

21 

70 

At ho ns 




— Madrid 

c 

9 

48 | 

Bihmn 

F 

17 

63lMaiorca 

r. 

15 

59 . 

Bart'na. 

F 

14 

57 TSalaqe 

c 

14 

57 • 

Beirut 

S 

18 

61 ' Malta 

H 

12 

54 

Bel/ae* 

R 

a 

JBfM'disir. 

C 

8 

46 

Balt] id 

C 

-4 

?5 Mdbno. 


— 

— 1 

Berlin 

s 

-3 

271Mk. C.t 


— 

— . 

Biarrirz 

c 

15 

59|M.amit 

C 

15 

59 1 

Bmt|hm. 

c 

G 

43, Milan 

c 

0 

32 

Blickpt. 

c 

7 

4S ' Momrl t 


— 

— 

Bmd* 

s 

12 

54 .Moscow 

F 

-6 

21 

Boulqn. 

F 

10 

50 Munich 

s 

-9 

16 

Bnsvsi 

c 

9 

48! Nairobi 


— 

— 

Brussel* C 

6 

43 ; Nsplos 

c 

11 

52 

Buctosu 

c 

~9 

IS'Niissau 


— 

“ 

Cairo 

s 

19 

GfiiNwcstl. 

c 

5 

4] 1 

Car tit If 

It 

7 

45. H. Yorkt C- 

-10 

u 

Cas b eo fl 

12 

54 j Nice 

5 

12 

54 

Ceon T. 

F 

25 

77 t Nicosia 


— 

— 1 

Chiu not F— 11 

13' Dpono 

C 

12 


Cotogns 

S 

3 

37. Oslo 

F 

-9 

16 1 

Cpnhgn. 

F 

-3 

27: Pans 

s 

9 

48 

Corfu 

s 

■ 13 

55 i Perth 

5 

29 

84 

Denver) 

F 

O 

32 > Pranim 

C 

-7 

19 

Dublin 

F 

9 

48'Raykjvk. 

5 

— 2 

28 

Dbrvnk. 




— 'Rhodes 

F 

IB 

61 

Wntigtr. 

C 

5 

41;Rto Jot 


— 

— 

Faro 

5 

15 

59 Rome 

c 

12 

54 ! 

Florence S 

5 

aiiSalzburq S 

-7 

19 

Franhft. 

C 

-3 

27 j S reset F 

6 

43 

Firncfiaf 

r 

17 

B3,S. MpritT 

— 

— | 

Gottava 

c 

1 

34' Sinnapr 


— 

— | 

Gibraltar C 

13 

55 S liaont 


— 

— . | 

Glaagnw C 

9 

48iS[ckhm. 

c 


28 

G'wssy 

c. 

8 

46 1 Sirnsbg. 

Pfl 

-5 

23 

Helsinki 

c 

— 2 

28 , Sydney 


— 

— | 

H. Kong 

s 

15 

61 ^Tangier 

r; 

13 

55 1 

InnsOrk. 

s 

0 

32 ■ Tfll Aviv Q 

17 

63 i 

Invrnas. 

F 

8 

4G'7qr»ftnIo 

F 

T7 

63 

1 o Man 



— 'Tokyo 

S 

7 

45 

Istanbul 

c 

7 

45 jT'roniot 





JarawiY 

c 

8 

46‘Tums 

R 

12 

54 

Jo'buiti 

F 

25 

77i Valencia C 

14 

57 s 

L. Pints. 

5 

20 

Gfl: Venice 1 


I 

34 

Lisbon 

F 

13 

55 : Vienna 

c 

-a 

18- 

Locarno Fa . 


2B> Wrrsew 

s 

-2 

3 

London 

F 

10 

50. Zurich 

s 

-8 

21 


C — Claudv, P— fair. F?— R — ft* in. 
Sunny. 

t Noon GMT. t iw pw Mu rM, 


Once is hapehstance,- tehee 
may be a Jittle more than co 
* incidence. Last month .. Hasle- 
mere- became ■ the first property 
company to follow -up its .1979 
rights issue with a repeat per- 
formance; yesterday . MEPC 
-played the - same card with a 
£62.3 m call. So, taking- in the 
Great Portland issue,, the sector 
bas raised more than £10Om 
within two months. .The market 
is now guessing nervously which 
companies may be planning to 
present fresh demands; against 
a buoyant trend 'everywhere 
else, the property index shed 'a 
further 0.1 per cent yesrerday. 

MEPCs issue is launched on 
the back of its good results last 
month, and -it bas arranged an 
aggressive development pro- 
gramme. At least £100m should 
be spent in the next couple of 
years . irtitie net available cash 
has shrunk to £10m. Further, 
heavy outgoings are envisaged 
subsequently on projects in 
Reading and in particular - 
D alias. So the company is retain- 
ing its objective of financing 
projects with two-thirds of debt, 
thus allowing geared up benefits 
to come through an future to 
shareholders. 

In -the shorMerm however 
asset backing per share is down 
nearly a tenth, but reversions 
this year mean that "cover on an 
unchanged dividend should be 
comfortable in spite of tbe in- 
crease in share' capital. The 
shares fell lip yesterday to 3I4p 
and the 38 per cent discount, 
cum rights, fo net assets com- 
pares with an average for the. 
sector of 34 per cent. No doubt 
MEPC will again use tire funds 
wisely, but at this sort of dis- 
count asset sales would seem 
preferable to rights issue 
finance. 


Index rose 11-2- to-545.9 


110 


Property 

relative to Am 



qfl i_i > r_i_L r -r >.:r_i i 
™ J F MAMl J AS OM'D'J 


19 s* 




1881 on fhe of . » strong 

doUar,are:Unlikelytogive much 
grounds. . ' - . ' '■> 

- - GM . remains, much the .most ' 
soundly, financed- of the 1 four • 
companies and the- only one 
: likely to ’show an- overall profit 
-for 1881. BuL even . assuming 
some recov/ry in., the current 
, year, the maintenance of jts 
dividend must. be. in-: some 
doubt.' 1 - . 

Ford's common stock has held 
vp ifell • m - the - dividend * 
atmainicement?. ' but ~the -‘ per* 
forma nee of ’ its bonds . : etves- 
seme indication of Ihe^mariket's 
\ctmctrtt, The-' 9.15- "per cent 
■ [offering . -due-j'^WH'-is^ yielding 
; around l^perieew’te J^ 

; " more-titan 3 [per-cent. abdve'.the ■_ 
triple utility average.- A farther 
/downgred&ig^of its credit rating 
-looks qh^he-iC»d5^ •' 




P 


r 


one-eighth, point reduction, in 
official buying rates • on .bills 
has translated into a; half point 
. fall .in the ; three-month, inter- 
bank rate. - ‘ v" • 

In general the Bank's task of 
relieving money market •■short- 
ages is .mere difficult when . the 
market is bullish and wants ’ to 
hold on to bUls: .The £yt-edg&£! 
sales of the last two tJayrin-.. 
yesterday the . ' Government 
Broker was cleaned out of the 
last £2 00m or so "of his short 
tap, having cut the price by an. 
obliging 2} points — will "of 
course make ; the . shortages' 
bigger, and today is hacking 
make-up day, But the problems 
of success are' alyrays 'tun to : 
solve, and the authorities -may 
soon be thinking in terms’ of- 
issuing more stock provided the 
gilt-edged market does not take 
fright at" tiie -Fed Funds rate 
again. . 


. - .vr •*. * . 4. - . 


P 


cfcie 


Another sixteenth 


Clumsy old Minimum Lend- 
ing Rate used to move in 
qua ter points when :it was 
going down (upward steps 
tended to be larger). The Bank 
of England's new .ultra-sensi- 
tive arrangements allow it to 
move interest rates through 
gradations that would not have 
alarmed dealers in Consols a 
century ago, and yesterday the 
Bank brought its bill dealing 
rates down by a sixteenth point 
for the second day running. 

The impression that the 
authorities are relaxed about 
things is now irresistible. It is 
not enough to suggest that the 
Bank is dropping iTs bill rates 
just to encourage the issue of 
more paper, since the come-cm 
that it has given the money 
markets has actually narrowed 
the arbitrage gap between bill 
and money market finance. A 


U.S. Motors ’ T 

-The U.Sl motor 1 indpstryTtaa 
been clearing the decks for what 
promises to. be another" .yiety- 
tongh -year. In the space o£-a 
few days. Ford has omitted its - 
first quarter dividend. -Generoi. 
Motors has announced sweeping 
price cuts, American Motors has 
reshuffled its fop management 
and the United -Autp.^Worice.rs i 
union has showed ' itself ready 
to accept profit-linked ‘Wage: 
settlements. V. “ . . - - •. • • .... } 

The shares of nn U.S. manu-.' 
facturers: are .trading well into , , 
the lower half of their last 12 
month range an dthe.tiireat of 
a deepening recession is forcing 
some downward; re virion of; unit 
sale forecasts.’ The market for. 
new cars is unlikely to rise far 
above Bin units m 1982; com- 
pared with a very depressed 
figure of S.5m last year. Im- 
porters, who pushed up their - 
market share to 27 per cent fri . 


MFI ; 

. ;• MFI-has. cast, ft shadow over 
. its .'impressive seL of interim 
'figures „with. some, very, bearish . 

comments about current trad- A.* ’ 

, ing. 'The Vad weather has left "V 
sales’ about 2? T>er eent befow 
. budget during what- te normally ... 7 ; 

a peak .seUiag .period.. The V*- 
: sharts, rasp ended with a 4p : dip ( - r V 
V, to ; 57p’;' " :• •.-;• : . ,- *. ■ r - 

. -MFI may - now struggle; to '.' 
t match last " yearis serorKHralf " v - ; . 
profit* bf £6.’8 ibl a'marked con- : ..i ; 
treat: to .the strong, recovery in - -- 
the six* months ‘ to -Hovember. * 

have risen.42 pec cent to. £7 Jin >. •> 
and net /margins are alnio&t: 3 - . ' ■- 
polrt ts ^higher ;at^4-pdr;'A»hL' : ‘. 
Arqnnd£750^0ff of the imprqvF- v;' . 
mriit. -reflects /the- absence ; £„• ' 

costs' riHittteto: the Status. >, 
.ri^t riiquirttioh, but MFI bas ^ " 

• also -mamt^ toinisb up seUkot , - 

price .by 5 .per..wnt fi whiie keep- . *■ 

; tog its purchase priefis and fixed 
costi vfirt4^1^>ittcliaxis^. v • ,< ... 

■ Tbrncwr .grewtiL' appear* /to - j 
below oiiM^s'listofpriorifies . 

.Sates - were -- down in - the first i • . 
balf^ capital spgnding this year ] 
will / be/ roiighly.-; £1 lm. .Tbvfer i- 
: ■ ^tiian/Iarir/yeairiS £I9m and floor . J 
spare. viS,. jiteing'; sub-tet : and : ^ 

surrendered to. / stqreriiMrtore . 
retailers./ With depreristiott. ris- 
ing^steeply and interest charges ' - - 
-still- runnihgat ■^6und£3m'a ; 
year^.' MfKTis. ulilSltely. to restore *.i. - 
the gteraqrous ^ tna,rgfnsb| 
a few ^are'ago but \the group ; 1= 
do eri Seem well past the worst! i 
1 It is; boweyei?,;; 'tCBl-r taking . ife. „ . 


year^ '- pajrment : was/ covered 
mote .“than twice by e*ceptidrf' 
ally weak current cost earnings 
so there maybe ^oiiie -room for 
an increase In- the finaL Mean- 

;while,^ the historic yield ls 6-7 . 

'percent '' - '' '• '* 


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